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The most recent financial statements for Matrix Chip are shown below.
Assets, costs, and current liabilities are proportional to sales. Matrix Chip maintains a constant 50% dividend payout. No external financing is possible. What is the maximum percentage increase in sales that can be sustained?
Other-Things-Constant Assumption
An assumption in economics that all other variables remain unchanged or constant except those under immediate consideration.
Rational
A decision-making process that is based on making choices that result in the optimal level of benefit or utility for an individual.
Expected Additional Benefit
The anticipated extra advantage or income gained from making a particular business decision or investment.
Expected Additional Cost
The anticipated expenses that are not initially accounted for, occurring as a consequence of a new action or decision.
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