The CEO would like to see higher sales and a forecasted net income of $3,860,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 9%. 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 $3,860,000 in net income? Round your answer to the nearest dollar, if necessary.

Check My Work (2 remaining) eBook Problem Walk-Through 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 1,440,000 EBIT $3,960,000 Interest 720,000 $3,240,000 Taxes (25%) 810,000 Net Income $2,430,000 The CEO would like to see higher sales and a forecasted net income of $3,860,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 9%. 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 $3,860,000 in net Income? Round your answer to the nearest dollar, if necessary