The following information is related to the current operation of Kenanga Branch.

Operating income $5,000,000$

Sales revenue $62,500,000$

Average operating asset $25,000,000$

Average balance in current liabilities $13,400,000$

The management of the company has decided that the minimum return required is $11$ percent.

Residual income is another approach that can be used to measure performance of an investment centre. Define residual income and determine the residual income for Kenanga Branch.