The following information is provided for Queenstown Limited for the year 20.10: R

Sales 33 375 000 Cost of sales 24 150 000 Retained earnings 1 725 000 Dividends on ordinary and preference shares 1 687 500 Interest expense 1 575 000 Tax rate is 30% Forecast for the year 20.11: Sales are expected to increase by R3 750 000. Goods will be sold at cost plus 50%. Operating expenses will remain unchanged. Interest expense is expected to be R1 800 000. The tax rate is expected to be 30%. Dividends on ordinary and preference shares will not change. Required Calculate the retained earnings expected in 20.11.