Income Statement Listed below is the 2012 income statement for Tom and Sue Travels, Inc.

The CEO of Tom and Sue's wants the company to earn a net income of $2.250 million in 2013. Cost of goods sold is expected to be 60 percent of net sales, depreciation and other operating expenses are not expected to change, interest expense is expected to increase to $1.050 million, and the firm's tax rate will be 30 percent. Calculate the net sales needed to pro- duce net income of $2.250 million. (LG1)

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TOM AND SUE TRAVELS, INC. Income Statement for Year Ending December 31, 2012 (in millions of dollars) Net sales Less: Cost of goods sold Gross profits Less: Depreciation Other operating expenses Earnings before interest and taxes (EBIT) Less: Interest Earnings before taxes (EBT) Less: Taxes Net income $16.500 7.100 $ 9.400 2.900 3.200 $ 3.300 0.950 $ 2.350 0.705 $ 1.645