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Edmonds Industries is forecasting the following income statement: Sales $11,000,000 Operating costs excluding depreciation & amortization 6,050,000 EBITDA $4,950,000 Depreciation and amortization 1,320,000 EBIT $3,630,000

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Edmonds Industries is forecasting the following income statement: Sales $11,000,000 Operating costs excluding depreciation & amortization 6,050,000 EBITDA $4,950,000 Depreciation and amortization 1,320,000 EBIT $3,630,000 Interest 1,100,000 EBT $2,530,000 Taxes (25%) 632,500 Net income $1,897,500 The CEO would like to see higher sales and a forecasted net income of $3,210,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 10%. 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 $3,210,000 in net income? Round your answer to the nearest dollar, if necessary. $

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