Based on the information contained in the Income Statement below, answer the following questions and show your work:

What was the EBITDA in Year 2?

How much additional revenue would be required to break even in Year 1 assuming no change in operating expenses?

Dollars Year 2 Year 1 Year 3 Sales COGS Gross Profit $ 600,000 $900,000 $985,000 $450,000 $625,000 $675,000 $150,000 $275,000 $310,000 Depreciation Goodwill Amortization Marketing and Selling General and Administrative MSG&A (Operating Exp) Operating Income $ 7,000 $ 7,000 $ 10,000 $ 1,000 $ 1,000 $ 1,000 $ 45,000 $ 60,000 $ 76,000 $ 155,000 $180,000 $ 205,000 $ 208,000 $248,000 $292,000 $(58,000) $ 27,000 $ 18,000 Interest Profit Before Taxes $ 2,000 $ 3,000 $(60,000) $ 24,000 $ 7,000 $ 11,000 Taxes Net Profit $ . $ 2,500 $ (60,000) $ 21,500 $ 1,000 $ 10,000