Sheridan Inc. management expects net sales to be $$920,000,$ total costs to be $$685,000,$ and to pay taxes at an average rate of $24$ percent this year. If the Sheridan pays out $38$ percent of its earnings as dividends, what is its retention ratio? $($Round answers to O decimal places e$.$g$.1,575.)$

Retention ratio $\%$

How much will Sheridan's retained earnings increase?

Retained earnings $