Westerville Company reported the following results from last years 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	$ 280,000
Contribution margin ratio	50	% of sales
Fixed expenses	$ 98,000

The companys minimum required rate of return is 15%

What is last years residual income?