Simeon Industries is forecasting the following income statement:

Sales	$16,000,000
Operating costs excluding depreciation	7,200,000
EBITDA	$ 8,800,000
Depreciation	1,000,000
EBIT	$ 7,800,000
Interest	2,500,000
EBT	$ 5,300,000
Taxes (40%)	2,120,000
Net income	$ 3,180,000

The CEO would like to see higher sales and a forecasted net income of $5,500,000. Assume that operating costs (excluding depreciation) are 45% of sales and that depreciation and interest expenses will increase by 15%. The tax rate will remain at 40%. What level of sales would generate $5,500,000 in net income?

Selected Answer:
Answers:	a. $23,984,848
	b. $20,919,177
	c. $18,320,000
	d. $18,845,000
	e. $28,863,636