Locton Industries is forecasting the following income statement for the upcoming year:

Sales $9,000,000

Operating Costs (excluding depreciation) 5,400,000

Depreciation 925,000

EBIT $2,675,000

Interest 475,000

EBT $2,200,000

Taxes (25%) 550,000

Net Income $1,650,000

Assume that operating costs (excluding depreciation) are always 60% of sales. Also assume that depreciation, interest expense, and the companys tax rate of 25% (not total taxes paid), will remain the same, even if sales change.

The companys president is disappointed with the forecast and would like to see Locton generate higher sales and a forecasted net income of $2,250,000. What level of sales would Locton have to obtain in order to generate $2,250,000 in net income?

a. $ 6,600,000

b. $ 9,875,000

c. $10,250,000

d. $11,000,000

e. $14,666,667