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Listed below is the 2015 income statement for Tom and Sue Travels, Inc. TOM AND SUE TRAVELS, INC. Income Statement for Year Ending December 31,

Listed below is the 2015 income statement for Tom and Sue Travels, Inc.

TOM AND SUE TRAVELS, INC.

Income Statement for Year Ending December 31, 2015

(in millions of dollars)Net sales$17.400Less: Cost of goods sold7.900

Gross profits$9.500Less: Other operating expenses3.600

Earnings before interest, taxes, depreciation,

and amortization (EBITDA)$5.900Less: Depreciation2.700

Earnings before interest and taxes (EBIT)$3.200Less: Interest0.785

Earnings before taxes (EBT)$2.415Less: Taxes0.705

Net income$1.710

The CEO of Tom and Sues wants the company to earn a net income of $2.730 million in 2013. Cost of goods sold is expected to be 50 percent of net sales, depreciation and other operating expenses are not expected to change, interest expense is expected to increase to $0.885 million, and the firms tax rate will be 30 percent.

Calculate the net sales needed to produce net income of $2.730 million.(Enter your answer in millions of dollars rounded to 3 decimal places.)

Net sales$m

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