Last year Martin Motors reported the following income statement:
Sales............................................ $2,000,000
Cost of goods sold............................. 1,200,000
EBITDA.........................................$ 800,000
Depreciation.......................................500,000
Operating income (EBIT) ......................$ 300,000
Interest expense....................................100,000
Taxable income (EBT) ........................$ 200,000
Taxes (40%)..........................................80,000
Net income.......................................$ 120,000
The company's CEO, Joe Lawrence, was unhappy with the firm's performance. This year, he would like to see net income doubled to $240,000. Depreciation, interest expense, and the tax rate will all remain constant, and the cost of goods sold will also remain at 60 percent of sales. How much sales revenue must the company generate to achieve the CEO's net income target?