Tillinghouse Industries reported net income of $84 million in 2004. The company's corporate tax rate was 40 percent and its interest expense was $40 million. The company had $600 million in sales and its cost of goods sold was $420 million. Tillinghouse's goal is for its net income to increase by 25 percent in 2005. It forecasts that the tax rate will remain at 40 percent, interest expense will increase by 40 percent, and cost of goods sold will remain at 70 percent of sales. What level of sales (to the closest million) will Tillinghouse have to produce in 2005 in order to meet its goal for net income?

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The Answer of Tillinghouse Industries reported net income of $84 million in 2004. The company's corporate tax rate was 40 percent and its interest expense was $40 million. The company had $600 million in sales and its cost of goods sold was $420 million. Tillinghouse's goal is for its net income to increase by 25 percent in 2005. It forecasts that the tax rate will remain at 40 percent, interest expense will increase by 40 percent, and cost of goods sold will remain at 70 percent of sales. What level of sales (to the closest million) will Tillinghouse have to produce in 2005 in order to meet its goal for net income?

Tillinghouse Industries Reported Net Income of $84 Million in 2004