Hermann Industries is forecasting the following income state

Assignment Help Finance Hermann Industries is forecasting the following income state

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Hermann Industries is forecasting the following income state

Hermann Industries is forecasting the following income statement: Sales … Show more Hermann Industries is forecasting the following income statement: Sales $6,000,000 operating costs excluding depreciation and amortization $3,300,000 EBITDA $2,700,000 Depreciation and amortization 720,000 EBIT $1,980,000 Interest 480,000 EBT $1,500,000 Taxes(40%) 600,000 Net Income $900,000 The CEO would like to see higher sales and a forecasted netincome of $1,450,000. Assume that operating costs(excluding depreciation andamortization) are 55 percent of sales, and depreciation andamortization and interest expenses will increase by 12 percent. The tax rate, which is 40 percent, will remain the same. What level of sales would generate $1,485,000 in net income? • Show less

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