Midlands Design Ltd. of Manchester, England, is a company specializing in providing design services to residential developers. Last year the company had net operating income of £480,000 on sales of £2,000,000. The company's average operating assets for the year were £2,200,000 and its minimum required rate of return was 12%. (The currency in the United Kingdom is the pound, denoted by £.)
Required:
Compute the company's residual income for the year. (Omit currency sign in your answers.)