Question: Juniper Design, provides design services to residential developers. Last year, the company had net operating income of $450,000 on sales of $1,300,000. The company's average

Juniper Design, provides design services to residential developers. Last year, the company had net operating income of $450,000 on sales of $1,300,000. The company's average operating assets were $1,500,000 and its minimum required rate of return was 15%.

Required:

Compute the company's residual income.

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