17. The owner of Dennis Smith Co" insisted that he wants to see a net income of $4,000,000, at least. He was informed that to do so, operating costs (excluding depreciation and amortization) should remain at 50 percent of sales. Also, depreciation and amortization, interest expense, and the company's tax rate, which is 40 percent, will remain the same even if sales change. The task that should be done is a better job in marketing the sale of the company's products. What level of sales would Smith Company have to obtain to generate $4,000,000 in net income? The owner was shocked with the most recent Net Income achieved by his company. It appeared as follows: * Sales Operating costs (excluding depreciation and amortization) EBITDA Depreciation and amortization EBIT $10,000,000 5,000,000 $5,000,000 1,600,000 $3,400,000 1,400,000 $2,000,000 800,000 $ 1.200.000 Interest EBT Taxes (40%) Net income 25,268,000 19,333,334 17,208,522 28,000,000 None of the above