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2. Given the following information: sales = $450, costs = $350, tax rate 34%, retention ratio = 30%, production = 95% of capacity, sales increase
2. Given the following information: sales = $450, costs = $350, tax rate 34%, retention ratio = 30%, production = 95% of capacity, sales increase = 10%. What is the expected addition to retained earnings? (Assume costs change directly with sales.) A) $ 1.98 B) $11.22 C) $19.80 D) $21.78 E) $50.82
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