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Edmonds Industries is forecasting the following income statement: Sales $10,000,000 Operating costs excluding depreciation & amortization 5,500,000 EBITDA $4,500,000 Depreciation and amortization 1,000,000 EBIT $3,500,000

Edmonds Industries is forecasting the following income statement:

Sales $10,000,000
Operating costs excluding depreciation & amortization 5,500,000
EBITDA $4,500,000
Depreciation and amortization 1,000,000
EBIT $3,500,000
Interest 500,000
EBT $3,000,000
Taxes (25%) 750,000
Net income $2,250,000

The CEO would like to see higher sales and a forecasted net income of $3,960,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 11%. The tax rate, which is 25%, will remain the same. (Note that while the tax rate remains constant, the taxes paid will change.) What level of sales would generate $3,960,000 in net income? Round your answer to the nearest dollar, if necessary.

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