The CEO of Tom and Sue's wants the company to earn a net income of $3.25 million in 2014. Cost of goods sold is expected to be 60 percent of net sales, depreciation expense is $2.9 million, interest expense is expected to increase to $1.050 million, and the firm's tax rate will be 30 percent. Calculate the net sales needed to produce net income of $3.25 million.
A)$26.02 million
B)$29.36 million
C)$21.48 million
D)$28.25 million

Question

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The Answer of The CEO of Tom and Sue's wants the company to earn a net income of $3.25 million in 2014. Cost of goods sold is expected to be 60 percent of net sales, depreciation expense is $2.9 million, interest expense is expected to increase to $1.050 million, and the firm's tax rate will be 30 percent. Calculate the net sales needed to produce net income of $3.25 million.
A)$26.02 million
B)$29.36 million
C)$21.48 million
D)$28.25 million

The CEO of Tom and Sue's Wants the Company to Earn