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Listed below is the income statement for Tom and Sue Travels, Incorporated TOM AND SUE TRAVELS, INCORPORATED Income Statement for Year End (in millions of

Listed below is the income statement for Tom and Sue Travels, Incorporated

TOM AND SUE TRAVELS, INCORPORATED Income Statement for Year End (in millions of dollars) Net sales $ 16.500 Less: Cost of goods sold 7.100 Gross profits $ 9.400 Less: Other operating expenses 3.200 Earnings before interest, taxes, depreciation, and amortization (EBITDA) $ 6.200 Less: Depreciation 2.900 Earnings before interest and taxes (EBIT) $ 3.300 Less: Interest 0.950 Earnings before taxes (EBT) $ 2.350 Less: Taxes 0.495 Net income $ 1.855

The CEO of Tom and Sues wants the company to earn a net income of $2.250 million next year. 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 $1.05 million, and the firms tax rate will be 21 percent. Calculate the net sales needed to produce net income of $2.250 million.

Note: Enter your answer in millions of dollars rounded to 3 decimal places. (i.e., Enter 5,500,000 as 5.500.)

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