The CEO would like to see higher sales and a forecasted net income of $2,500,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 10%. The tax rate, which is 40%, will remain the same. What level of sales would generate $2,500,000 in net income?

Sales	$8,000,000
Operating costs excluding depr. & amort.	4,400,000
EBITDA	$3,600,000
Depreciation & amortization	800,000
EBIT	$2,800,000
Interest	600,000
EBT	$2,200,000
Taxes (40%)	880,000
Net income	$1,320,000