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Edmonds Industries is forecasting the following income statement: Sales $5,000,000 Operating costs excluding depreciation & amortization 2,750,000 EBITDA $2,250,000 Depreciation and amortization 600,000 EBIT $1,650,000

Edmonds Industries is forecasting the following income statement:

Sales $5,000,000
Operating costs excluding depreciation & amortization 2,750,000
EBITDA $2,250,000
Depreciation and amortization 600,000
EBIT $1,650,000
Interest 250,000
EBT $1,400,000
Taxes (25%) 350,000
Net income $1,050,000

The CEO would like to see higher sales and a forecasted net income of $2,080,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 8%. 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 $2,080,000 in net income? Round your answer to the nearest dollar, if necessary.

$

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