A Firm Has Sales of $1

question 89

Multiple Choice

A firm has sales of $1.2 million,a profit margin of 5%,and a dividend payout ratio of 25%.How much will be added to retained earnings next year if sales increase by 6%?

• A) $15,900
• B) $21,600
• C) $47,700
• D) $42,000

---

Definitions:

Social Exchange Theory

A theoretical framework suggesting that social behavior is the result of an exchange process aiming to maximize benefits and minimize costs in relationships.

Altruism

The selfless concern for the well-being of others, often leading to acts of kindness without expectation of reward.

Companionate Love

A type of love marked by profound attachment, companionship, and emotional closeness, commonly observed in enduring relationships.

Positive Support

Encouragement or assistance provided in a positive manner to promote the well-being and growth of others.