Lebrijano Guitars expects sales of $$1,700$ next year, and you estimate that the company's profit margin is $5\%.$ What is the projected increase in retained earnings if the firm has a $37\%$ dividend payout ratio?

Multiple Choice

$85\mathrm{.}00$

$65\mathrm{.}19$

$19\mathrm{.}81$

$53\mathrm{.}55$

$31\mathrm{.}45$