Below is Acme Company's income statement for the year: Sales $7,000 Operating costs 3,000 4,000 EBIT Interest 200 3,800 Taxable income Taxes (25%) 950 Net income $2,850 The company forecasts that its sales will increase by 10 percent and its operating costs will increase in proportion to sales. The company's interest expense is expected to remain at $200, and the tax rate will remain at 25 percent. The company plans to pay out 60 percent of its net income as dividends. What is the forecasted change to retained earnings? Select one: O A. $1,008 O B. $1,140 O C. $1,710 O D. $2,850 O E. None of the above