Edmonds Industries is forecasting the following income statement: Sales $8,000,000 Operating costs excluding depreciatio

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Edmonds Industries Is Forecasting The Following Income Statement Sales 8 000 000 Operating Costs Excluding Depreciatio 1 (16.83 KiB) Viewed 64 times

Edmonds Industries is forecasting the following income statement: Sales $8,000,000 Operating costs excluding depreciation & amortization 4,400,000 EBITDA Depreciation and amortization $3,600,000 960,000 EBIT $2,640,000 Interest 640,000 EBT $2,000,000 Taxes (25%) Net income 500,000 $1,500,000 The CEO would like to see higher sales and a forecasted net income of $2,310,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 6%. The tax rate, which is 25%, will remain the same. (Note that while the tax rate remains constant, the taxes paid will change.) What level of sales would generate $2,310,000 in net income? Round your answer to the nearest dollar, if necessary.