Sales and Growth The most recent financial statements for Fontenot Co. are shown here:

Income Statement Balance Sheet Sales Costs Taxable income Taxes (34%)

Net income

$54,000 39,300

$14,700 4,998

$ 9,702 Current assets Fixed assets Total

$ 31,000 118,000

$149,000 Long-term debt Equity Total

$ 68,000 81,000

$149,000 Assets and costs are proportional to sales. The company maintains a constant 30 percent dividend payout ratio and a constant debt–equity ratio. What is the maximum increase in sales that can be sustained assuming no new equity is issued?