Westerville Company reported the following results from last years operations:

Required information [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 o $1,500,000 530,000 970,000 670,000 $ 300,000 perating income Average operating assets 937,500 At the beginning of this year, the company has a $212,500 investment opportunity with the following cost and revenue characteristics: 340,000 Sales Contribution margin ratio Fixed expenses 70 % of sales $ 187,000 The company's minimum required rate of return is 10% 11. What is last year's residual income? Residual income 12. What is the residual income of this year's investment opportunity? Residual income 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