Question
Last year Martin Motors reported the following income statement: Sales $2000 000 Cost of goods sold 1 200 000 EBITDA 800 000 Depreciation and amortization
Last year Martin Motors reported the following income statement:
Sales $2000 000
Cost of goods sold 1 200 000
EBITDA 800 000
Depreciation and amortization 500 000
Operating income 300 000
Interest expense 100 000
EBT 200 000
Taxes 40% 80 000
Net income 120 000
The company's CEO was unhappy with the firm's performance. This year, he would like to see net income doubled. Depreciation and amortization, interest expense, and the tax rate will all remain constant, and the cost of goods sold will also remain at 60% of sales. How much sales revenue must the company generate to achieve the CEO's net income target?
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