The Cookie Shoppe Expects Sales of $437,500 Next Year

The Cookie Shoppe expects sales of $437,500 next year.The profit margin is 5.3 percent and the firm has a 30 percent dividend payout ratio.What is the projected increase in retained earnings?

A) $16,231
B) $17,500
C) $18,300
D) $20,600
E) $21,000