Hungry Howie's Is Currently Operating at 96 Percent of Capacity

Hungry Howie's is currently operating at 96 percent of capacity. The profit margin and the dividend payout ratio are projected to remain constant. Sales are projected to increase by 3 percent next year. What is the projected addition to retained earnings for next year?

A) $1,309.19
B) $1,421.40
C) $1,884.90
D) $2,667.78
E) $3,001.40