The cookie shoppe expects sales of $437,500 next year. the profit margin is 4.8 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

Projected Increase in Retained Earnings = $16231.25

so correct option is a. $16231

Explanation:

given data

sales = $437,500

profit margin = 4.8 percent

dividend payout ratio = 30 %

to find out

projected increase in retained earnings

solution

we get here first Expected Profit that is express as

expected Profit = Sales × Profit Margin   1

expected Profit = 437500 × 5.3%

expected Profit = $23187.50

and Dividends is here as

Dividends = Expected Profit × Dividend Payout Ratio   2

Dividends = 23187.50  × 30%

Dividends = $6956.25

Projected Increase in Retained Earnings will be

Projected Increase in Retained Earnings = expected Profit - Dividends   3

Projected Increase in Retained Earnings  = $23187.50 - $6956.25

Projected Increase in Retained Earnings = $16231.25

so correct option is a. $16231

answer; ///(d); determining who competes most closely   with whom evaluating whether industry driving forces and competitive pressure favor some strategic groups and hurt others, and ascertaining whether the profit potential of different strategic groups varies due to the strengths and weaknesses in each groups respective market positions;

answer$22,000 ;