3-15 INCOME STATEMENT Edmonds Industries is forecasting the following income statement: Sales $10,000,000 Operating costs excluding depreciation and amortization 5,500,000 EBITDA $ 4,500,000 Depreciation and amortization 1,200,000 EBIT $ 3,300,000 Interest 500,000 EBT $ 2,800,000 Taxes (40%) 1,120,000 Net income $ 1,680,000 The CEO would like to see higher sales and a forecasted net income of $2, 100,000. 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 40%, will remain the same. (Note that while the tax rate remains constant, the taxes paid will change.) What level of sales would generate $2, 100,000 in net income