Problem:
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 £410,000 on sales of £1,800,000. The companyâ??s average operating assets for the year were £2,000,000 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 the "£" sign in your response.)