Navas 27 April 2020 at 12:41 PM

Question	A company had $500,000 of sales for the year just ended and is projecting sales of $600,000 for the coming year. For every $1 increase in sales, 38 cents of additional financing is required for the purchase of additional assets. The projected profit margin is 20%, and 60% of profits will be retained for reinvestment in the company. The amount of additional external financing needed by the company in the coming year is
	A) $110,000
	B) $0
	C) $38,000
	D) $86,000