Westerville Company reported the following results from last years operations:

Sales	$	1,750,000
Variable expenses		520,000
Contribution margin		1,230,000
Fixed expenses		880,000
Net operating income	$	350,000
Average operating assets	$	875,000

At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics:

Sales	$	320,000
Contribution margin ratio		60	% of sales
Fixed expenses	$	128,000

The companys minimum required rate of return is 20%.

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