3-11 Income statement Hermann Industries is forecasting the following income statement Sales Operating costs excluding depreciation $8,000,000 and amortization EBITDA Depreciation and amortization EBIT Interest EBT Taxes (40%) Net income 4,400,000 $3,600,000 800,000 2,800,000 600,000 $2,200,000 880,000 $1,320,000 The CEO would like to see higher sales and a forecasted net income of $2,500,000 Assume that operating costs (excluding depreciation and amortization) are 55 percent of sales, and depreciation and amortization and interest expenses will increase by 10 per cent. The tax rate, which is 40 percent, will remain the same generate $2,500,000 in net income? What level of sales would