Samson's Sailboats Inc. recently reported the following income statement (in millions of dollars):
2005
Sales $4,500
Operating costs 3,500
EBIT $1,000
Interest 200
EBT $ 800
Taxes (40%) 320
Net income $ 480
Dividends (40%) $ 192
Addition to retained earnings $ 288
This year the company is forecasting a 60% increase in sales, and it expects that its year-end operating costs will decline to 50% of sales. Samson's tax rate, interest expense, and dividend payout ratio are all expected to remain constant. What is Samson's projected 2006 net income?