The Foundational 15 [LO10-1, LO10-2) [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 $1,000,000 see, ese 780,000 500,000 $ 200,000 $ 625,000 At the beginning of this year, the company has a $120,000 Investment opportunity with the following cost and revenue haracteristics: Sales Contribution margin ratio Fixed expenses $ 200,000 60x of sales 590,000 The company's minimum required rate of return is 15% Foundational 10-12 12. What is the residual income of this year's investment opportunity? Residual income