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Planners have determined that sales will increase by 20% next year, and the profit margin will remain at 10% of sales. Which one of the

Planners have determined that sales will increase by 20% next year, and the profit margin will remain at 10% of sales. Which one of the following statements is correct if the payout ratio remains at 30%

A. Net Income will increase by 10% next year

B. The addition to retained earnings will increase by 20% next year

C. The dividend will increase by 6% next year

D. The addition to retained earnings will equal 6% of the sales increase next year

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