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$7.$ Problem $3\mathrm{.}15($Income Statement$)$

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Edmonds Industries is forecasting the following income statement:

Sales

Depreciation and amortization

EBIT

Interest

EBT

$\frac{1,350,000}{\text{\$}2,700,000}$

$\frac{900,000}{\text{\$}1,800,000}$

Taxes $(25\%)$

Net income

The CEO would like to see higher sales and a forecasted net income of $$1,940,000.$ Assume that operating costs $($excluding depreciation and amortization$)$ are $55\%$ of sales and that depreciation and amortization and interest expenses will increase by $12\%.$ The tax rate, which is $25\%,$ will remain the same. $($Note that while the tax rate remains constant, the taxes paid will change.$)$ What level of sales would generate $$1,940,000$ in net income? Round your answer to the nearest dollar, if necessary.

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