5. Problem 3.15 (Income Statement) ELE eBook Problem Walk-Through Edmonds Industries is forecasting the following income statement: Sales $11,000,000 Operating costs excluding depreciation & amortization 6,050,000 EBITDA $4,950,000 Depreciation and amortization 660,000 EBIT $4,290,000 Interest 660,000 EBT $3,630,000 Taxes (25%) 907,500 Net income $2,722,500 The CEO would like to see higher sales and a forecasted net income of $5,420,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 7%. 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 $5,420,000 in net income? Round your answer to the nearest dollar, if necessary. $ Grade it Now Save & Continue Continue without saving