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1) Airhotelbee, Inc. has net income of $7,100, interest expense of $1,420, current sales of $58,600, dividends paid of $1,925, and EBIT of $10,200. Assume

1) Airhotelbee, Inc. has net income of $7,100, interest expense of $1,420, current sales of $58,600, dividends paid of $1,925, and EBIT of $10,200. Assume the dividend payout ratio, debt-equity ratio, and profit margin remain the same. What is the projected change to retained earnings for the next year if sales are estimated to increase by $7,800 next year?

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