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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 $ 19.400
Less: Cost of goods sold 8.900
Gross profits $ 10.500
Less: Other operating expenses 4.100
Earnings before interest, taxes, depreciation, and amortization (EBITDA) $ 6.400
Less: Depreciation 3.700
Earnings before interest and taxes (EBIT) $ 2.700
Less: Interest 0.835
Earnings before taxes (EBT) $ 1.865
Less: Taxes 0.392
Net income $ 1.473

The CEO of Tom and Sues wants the company to earn a net income of $3.150 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 $1.301 million, and the firms tax rate will be 21 percent.

Calculate the net sales needed to produce net income of $3.150 million. (Enter your answer in millions of dollars rounded to 3 decimal places.)

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