The most recent financial statements for Alexander Co. are shown here:

Income Statement		Balance Sheet
Sales	$50,000	Current assets	$78,300	Long-term debt	$54,000
Costs	32,000	Fixed assets	43,200	Equity	67,500
Taxable income	$18,000	Total	$121,500	Total	$121,500
Taxes (22%)	3,960
Net income	$14,040

Assets and costs are proportional to sales. The company maintains a constant 28 percent dividend payout ratio and a constant debt-equity ratio.

What is the maximum increase in sales that can be sustained assuming no new equity is issued?

Multiple Choice

• $4,537.52

• $8,906.93

• $8,806.93

• $3,092.08

• $8,706.93