Automobile Company reported sales of $816,700.00 in 2017. The company is not happy with this figure and decides to hire a marketing agency to create advertisements for $91,510.00. The marketing agency promises that sales will grow by 15.00% in 2018. Fat Tire expects cost of goods to remain at 30.00% of sales, and depreciation expense will remain at $25,000.00. Selling and administrative expense was$60,000 in 2017. The cost of the marketing agency will be added to this expense for 2018.

A)What was the operating profit for 2017?

B)What is the projected operating profit for 2018?

C)What is the minimum growth rate in sales to make the marketing agency investment worthwhile?