Attempts: Keep the Highest: /1 5. Problem 3.15 (Income Statement) eBook Problem Walk-Through Edmonds Industries is forecasting the following income statement: Sales Operating costs excluding depreciation & amortization EBITDA Depreciation and amortization EBIT $6,000,000 3,300,000 $2,700,000 720,000 $1,980,000 540,000 $1,440,000 360,000 $1,080,000 Interest EBT Taxes (25%) Net Income The CEO would like to see higher sales and a forecasted net income of $1,970,000. 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 25%, will remain the same. (Note that while the tax rate remains constant, the taxes paid will change.) What level of sales would generate $1,970,000 in net income? Round your answer to the nearest dollar, if necessary. Grade It Now Save Continue Continue without saving