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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 660,000 EBIT $4,290,000

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 660,000
EBIT $4,290,000
Interest 1,100,000
EBT $3,190,000
Taxes (25%) 797,500
Net income $2,392,500

The CEO would like to see higher sales and a forecasted net income of $2,920,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 9%. 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 $2,920,000 in net income? Round your answer to the nearest dollar, if necessary.

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