The Casket Division of Saal Corporation had average operating assets of $950,000 and net operating income of $135,200 in January.The company uses residual income to evaluate the performance of its divisions, with a minimum required rate of return of 13%.
Required:
What was the Casket Division's residual income in January?

Residual Income

The amount of income generated after all expenses and costs have been deducted from total revenues, often used in performance evaluation.

Minimum Required Rate

The lowest acceptable return on investment or performance measure that a company or investor expects to achieve.

Operating Assets

Resources owned by a business that are used in its day-to-day operations to generate income.