Assets, Accounts Payable and Costs Are Proportional to Sales

Assets, accounts payable and costs are proportional to sales. Debt and equity are not. Sales of Wintergreen, Inc. are expected to increase by 13% next year. The dividend payout ratio is
35%) The company is currently operating at 93% of capacity. What is the projected retained
Earnings balance at the end of next year?

A) $132
B) $414
C) $1,235
D) $2,087
E) $2,203