A. This answer is simply the increase in sales that will occur if the company does nothing. This will occur simply because of an increase in the price level. In order to achieve a 20% real growth rate, the sales will need to increase by 20% in constant dollar terms.

B. The real growth rate is growth that is stated in a constant dollar terms. Because the price index indicates that the company's sales will increase from $300,000 to $320,000 in value simply because of an increase in prices and not because of an increase in quantity sold, their sales will need to increase by 20% of this amount in order to have a real increase. 20% of $320,000 is $64,000. Therefore, in order to have real growth of 20%, sales will need to increase to $384 in 2011.

C. This answer does not take into account the increase in the price index. However, since the real growth rate is calculated using a constant dollar, the increase in the price index must be included in order to determine the sales that will be required to achieve a real growth rate of 20%.

D.This answer is incorrect. See the correct answer for a complete explanation.