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Sales $11,000,000 Operating costs excluding depreciation & amortization 6,050,000 EBITDA $4,950,000 Depreciation and amortization 1,650,000 EBIT $3,300,000 Interest 990,000 EBT $2,310,000 Taxes (25%) 577,500 Net

Sales $11,000,000
Operating costs excluding depreciation & amortization 6,050,000
EBITDA $4,950,000
Depreciation and amortization 1,650,000
EBIT $3,300,000
Interest 990,000
EBT $2,310,000
Taxes (25%) 577,500
Net income $1,732,500

The CEO would like to see higher sales and a forecasted net income of $2,250,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 5%. 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 $2,250,000 in net income? Round your answer to the nearest dollar, if necessary.

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