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34. Swann Systems is forecasting the following income statement for the upcoming year. Sales Operating costs (excluding depreciation and amortization) EBITDA Depreciation and amortization EBIT

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34. Swann Systems is forecasting the following income statement for the upcoming year. Sales Operating costs (excluding depreciation and amortization) EBITDA Depreciation and amortization EBIT Interest EBT Taxes (400) Not income $5,000,000 3,000,000 $2,000,000 500,000 $1,500,000 500,000 $1,000,000 400,000 $ 600.000 The company's president is disappointed with the forecast and would like to see Swann generate higher sales and a forecasted net income of $2,000,000. Assume that operating costs (excluding depreciation and amortization) are always 60 percent of sales. Also, assume that depreciation and amortization. Interest expense, and the company's tax rate, which is 40 percent, will remain the same even if sales change. What level of sales would Swann have to obtain to generate $2,000,000 in net income? A. $ 6,000,000 B. $ 7,200,000 C. $9,300,000 D. $10,833,333

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