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Listed below is the 2021 income statement for Tom and Sue Travels, Inc. TOM AND SUE TRAVELS, INC. Income Statement for Year Ending December 31,

Listed below is the 2021 income statement for Tom and Sue Travels, Inc.

TOM AND SUE TRAVELS, INC.
Income Statement for Year Ending December 31, 2021
(in millions of dollars)
Net sales $ 19.000
Less: Cost of goods sold 8.700
Gross profits $ 10.300
Less: Other operating expenses 4.000
Earnings before interest, taxes, depreciation, and amortization (EBITDA) $ 6.300
Less: Depreciation 3.500
Earnings before interest and taxes (EBIT) $ 2.800
Less: Interest 0.825
Earnings before taxes (EBT) $ 1.975
Less: Taxes 0.415
Net income $ 1.560

The CEO of Tom and Sues wants the company to earn a net income of $3.050 million in 2022. 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 $1.291 million, and the firms tax rate will be 21 percent.

Calculate the net sales needed to produce net income of $3.050 million. (Enter your answer in millions of dollars rounded to 3 decimal places.)

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