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Ash Dixon (AD) enterprises forecasts 2021 sales of $350,000. The selling price per unit is $60. COGS is 65% of sales. G&A (General and Administrative)
Ash Dixon (AD) enterprises forecasts 2021 sales of $350,000. The selling price per unit is $60. COGS is 65% of sales. G&A (General and Administrative) expenses are $65,000 and Marketing expenses are $55,000. Both G&A and Marketing expenses are fixed and dont vary with units sold. Interest expense if $10,000. Answer the following:
- What is the survival revenue? (hint: the amount of revenue where EBDAT=0)
- What is the EBDAT BE in terms of the number of units sold?
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