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INCOME STATEMENT

Edmonds Industries is forecasting the following income statement:

Sales	$12,000,000
Operating costs excluding depreciation & amortization	6,600,000
EBITDA	$5,400,000
Depreciation and amortization	1,680,000
EBIT	$3,720,000
Interest	600,000
EBT	$3,120,000
Taxes (40%)	1,248,000
Net income	$1,872,000

The CEO would like to see higher sales and a forecasted net income of $2,340,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 11%. The tax rate, which is 40%, will remain the same. (Note that while the tax rate remains constant, the taxes paid will change.) What level of sales would generate $2,340,000 in net income? If necessary, round your answer to the nearest dollar at the end of the calculations. $

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