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CC (Caleb Clark) enterprises forecasts 2021 sales of $400,000. The selling price per unit is $75. COGS is 70% of sales. G&A (General and Administrative) expenses are $70,000 and Marketing expenses are $50,000. Both G&A and Marketing expenses are fixed and don't vary with units sold. Interest expense if $10,000. Answer the following:
Problem a) What is the survival revenue? (hint: the amount of revenue where EBDAT=0)
Problem b) What is the EBDAT BE in terms of the number of units sold?
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