O EBITDA eBook Problem Walk-Through Edmonds Industries is forecasting the following income statement: Sales $11,000,000 Operating costs excluding depreciation & amortization 6,050,000 $4,950,000 Depreciation and amortization 550,000 EBIT $4,400,000 Interest 880,000 EBT $3,520,000 Taxes (25%) 880,000 Net Income $2,640,000 The CEO would like to see higher sales and a forecasted net income of $3,220,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 8%. 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 $3,220,000 in net income? Round your answer to the nearest dollar, if necessary. Check My Work