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

question 61

Multiple Choice

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 5 percent next year.What is the projected addition to retained earnings for next year?

• A)$1,309.19
• B)$11,753.50
• C)$1,884.90
• D)$2,667.78
• E)$3,001.40

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Definitions:

Radical Expression

A term that features a symbol representing a square root, cube root, or any root of higher degree.

Negative Exponent

A power notation indicating division by the base raised to the absolute value of the exponent.

Square Root

A value that, when multiplied by itself, gives the original number, denoted as √.

Cube Root

The cube root of a number is a value that, when multiplied by itself three times, gives the original number.