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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 $ 16.400
Less: Cost of goods sold 7.400
Gross profits $ 9.000
Less: Other operating expenses 3.350
Earnings before interest, taxes, depreciation, and amortization (EBITDA) $ 5.650
Less: Depreciation 2.200
Earnings before interest and taxes (EBIT) $ 3.450
Less: Interest 0.760
Earnings before taxes (EBT) $ 2.690
Less: Taxes 0.565
Net income $ 2.125

The CEO of Tom and Sues wants the company to earn a net income of $2.400 million in 2022. Cost of goods sold is expected to be 60 percent of net sales, depreciation and other operating expenses are not expected to change, interest expense is expected to increase to $1.226 million, and the firms tax rate will be 21 percent.

Calculate the net sales needed to produce net income of $2.400 million. (Enter your answer in millions of dollars rounded to 3 decimal places.)

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