The balance sheet and income statement of the Grow 'n' Glow Manufacturing Company during the past year are as follows (000 omitted):

 BALANCE SHEET         

 Assets                                              Liabilities  

  Cash                         $  9,700              Accounts payable             $ 3,000

  Accounts receivable               15,300              Notes payable                10,000

  Inventory                       18,500              Accrued liabilities              6,000

    Total current assets           $ 43,500              Total current liabilities         $ 27,900

  Held-to-maturity securities       $ 45,600              Long-term debt              $ 35,600

  Net fixed assets                  32,200             Total liabilities                $ 54,600

    Total long-term assets         $ 77,800      

                                                    Equity  

    Total assets                 $121,300             Common stock                $ 10,000

                                                   Additional paid-in capital         30,000

                                                   Retained earnings               26,700

                                                   Total equity                  $ 66,700

                                                   Total liabilities & equity        $121,300

  INCOME STATEMENT

   Net sales                              $100,000     

   Cost of goods sold                         66,200    

     Gross profit                         $  33,800     

   Selling expense                           16,400     

   General & admin. expense                  11,200    

     Operating income                       $ 6,200     

   Net interest expense                       $ 1,200    

   Net income before tax                      $ 5,000     

   Taxes @ 35%                               1,750    

      Net income                            $ 3,250     

The company paid dividends during the past year of $975. During the past year, fixed assets were being used at 85% of capacity. In all other respects, the company was operating at full capacity.

Assuming the company's dividend policy is that dividends will grow at a rate of 4% per year, by what percentage could next year's sales increase over the past year's sales without the company needing to increase its fixed assets?

A. 27.4%

B. 67.8%

C. 17.6%

D. 15%