[The following information applies to the questions displayed below.]

Westerville Company reported the following results from last years operations:

Sales	$ 1,800,000
Variable expenses	435,000
Contribution margin	1,365,000
Fixed expenses	1,005,000
Net operating income	$ 360,000
Average operating assets	$ 1,200,000

At the beginning of this year, the company has a $300,000 investment opportunity with the following cost and revenue characteristics:

Sales	$ 360,000
Contribution margin ratio	70	% of sales
Fixed expenses	$ 216,000

The companys minimum required rate of return is 10%.

13. If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year?