Pattie Cake Johnson Enterprise is forecasting the following income statement for the upcoming year:

Sales$9,275,000

Operating Costs (excluding depreciation)6,028,750

Depreciation 925,000

EBIT$2,321,250

Interest509,998

EBT$1,811,252

Taxes (25%)452,813

Net Income$1,358,439

Assume that operating costs (excluding depreciation) are always 65% of sales.Also assume that depreciation, interest expense, and the company's tax rate of 25% (not total taxes paid), will remain the same, even if sales change.

The company's president is disappointed with the forecast and would like to see Hawley generate higher sales and a forecasted net income of $2,100,000.What level of sales would Hawley have to obtain in order to generate $2,100,000 in net income?

a.$7,864,996

b.$10,568,576

c.$11,225,233

d.$12,099,994

e.$12,454,579