Ozark Industries reported net income of $75 million in 2005. The company's corporate tax rate was 40%, and its interest expense was $25 million. The company had $500 million in sales and its cost of goods sold was $350 million. Ozark's goal is for its net income to increase by 20% (to $90 million) in 2006. It forecasts that the tax rate willremain at 40%, interest expense will increase by 40%, and cost of goods sold will remain at 70% of sales. What level of sales (to the closest million) will Ozark have to produce in 2006 in order to meet its goal for net income?
Please show all steps clearly (and your explanation if needed). Thank you