Edmonds Industries is forecasting the following income statement: Sales Operating costs excluding depreciation & amortization EBITDA $10,000,000 5,500,000 $4,500,000 700,000 $3,800,000 600,000 EBT $3,200,000 Taxes (25%) 800,000 $2,400,000 Net income The CEO would like to see higher sales and a forecasted net income of $3,960,000. 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 $3,960,000 in net income? Round your answer to the nearest dollar, if necessary. Depreciation and amortization EBIT Interest

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