Answer:
$2,962.19
Step-by-step explanation:
We first need to calculate the return on equity (ROE) = net income / shareholders' equity = $5,767 / $49,000 = 11.7694%
now we calculate the plowback ratio = 1 - payback ratio
plowback ratio = 1 - 45% = 55%
then we need to determine the sustainable growth rate = (ROE x plowback) / [1 - (ROE x plowback)] = (11.7694% x 0.55) / [1 - (11.7694% x 0.55)] = 0.06473 / 0.93527 = 6.921%
maximum increase in sales = total sales x sustainable growth rate = $42,800 x 6.921% = $2,962.19