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Edmonds Industries is forecasting the following income statement: Sales $7,000,000 Operating costs excluding depreciation & amortization 3,850,000 EBITDA $3,150,000 Depreciation and amortization 980,000 EBIT $2,170,000

Edmonds Industries is forecasting the following income statement: Sales $7,000,000

Operating costs excluding depreciation & amortization 3,850,000

EBITDA $3,150,000

Depreciation and amortization 980,000

EBIT $2,170,000

Interest 700,000

EBT $1,470,000

Taxes (25%) 367,500

Net income $1,102,500

The CEO would like to see higher sales and a forecasted net income of $1,330,000. 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 $1,330,000 in net income? Round your answer to the nearest dollar, if necessary.

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