[The following information applies to the questions displayed below.) Westerville Company reported the following results from last year's operations: Sales $ 1,400,000 Variable expenses 510,000 Contribution margin 890,000 Fixed expenses 610,000 Net operating income $ 280,000 average operating assets $ 875,000 At the beginning of this year, the company has a $175,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 280,000 50 of sales $ 98,000 The company's minimum required rate of return is 15% Foundational 10-12 (Algo) 12. What is the residual income of this year's investment opportunity? Residual income $ 70.000 The following information applies to the questions displayed below.) Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,400,000 $10,000 890,000 610,000 $ 280,000 $ 875,000 At the beginning of this year, the company has a $175,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 280,000 50 of sales $ 98,000 The company's minimum required rate of return is 15%. Foundational 10-13 (Algo) 13. If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year? Residual income $ 70.000