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Edmonds Industries is forecasting the following income statement: Sales $4,000,000 Operating costs excluding depreciation & amortization 2,200,000 EBITDA $1,800,000 Depreciation and amortization 240,000 EBIT $1,560,000

Edmonds Industries is forecasting the following income statement:

Sales $4,000,000

Operating costs excluding depreciation & amortization 2,200,000

EBITDA $1,800,000

Depreciation and amortization 240,000

EBIT $1,560,000

Interest 280,000

EBT $1,280,000

Taxes (40%) 512,000

Net income $768,000

The CEO would like to see higher sales and a forecasted net income of $921,600. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 13%. 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 $921,600 in net income? If necessary, round your answer to the nearest dollar at the end of the calculations.

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