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-   -   How to calculate the amount of sales necessary to generate 1,1915,200 in net income? (https://www.askmehelpdesk.com/showthread.php?t=668736)

  • Jun 8, 2012, 11:08 PM
    sddavis67
    How to calculate the amount of sales necessary to generate 1,1915,200 in net income?
    Sales - $6,000,000
    Operating cost 3,300,000
    EBITDA 2,700,000
    Depreciation & Amort 420,000
    EBIT 2,280,000
    Interest 600,000
    EBT 1,680,000
    Taxes(40%) 672,000
    Net Income 1,008,000
    The CEO would like to see higher sales and a forecasted net income of $1,915,200. Assume that operating cost (excluding depreciation and amortization) are 55% of sales, and depreciation and amortization and interest expenses will increase by 7%. The tax rate, which is 40%, will remain the same. What level of sales wold generate $1,915,200 in net income? I

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