first let us know the ROI = net income / total equity
=>6,636 / 49,660
=>13.36%
plowback ratio (b) = 1 - payout ratio
=>1 - 0.45
=>0.55.
now we shall find the sustainable growth rate
sustainable growth rate = (roe*b ) / [1- (roe *b)]
=>(0.1336*0.55) / [1-(0.1336**0.55)]
=>0.07348/[1-0.07348]
=>0.07348/0.92652
=>0.0793
=>7.93%
maximum dollar increase in sales will be = 44,450 * sustainable growth rate
=>44,450 * 7.93%
=>$3,524.89
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