entrepreneur finance

LEVEL UP COMPANY Level Up Company had a very difficult operating year in 2012 resulting in a net loss of $65,000 on sales of $900,000. In 2013, sales jumped to $1,500,000 and a net profit after taxes was earned. The firm's income statements are below. LEVEL UP COMPANY 2012 2013 Net Sales $900,000 $1,500,000 Cost of Goods Sold -540,000 -900,000 Gross Profit 360,000 600,000 Marketing -90,000 -150,000 General & Administrative -250,000 -250,000 Depreciation -40,000 -40,000 EBIT -20,000 160,000 Interest -45,000 -60,000 Earnings Before Taxes -65,000 100,000 Income Taxes 0 -25,000* Net Income (Loss) -$65,000 $75,000 A. Estimate LEVEL UP EBDAT breakeven in terms of survival revenues for 2012.- B. Estimate the dollar amount of survival revenues actually needed by the LEVEL UP Company to reach EBDAT breakeven in 2013 given that more debt was obtained, and interest expenses increased to $60,000.- C. We have a reason to believe that year 2014 will be a replication of year 2013 except that cost of goods sold are expected to be 65 percent of the estimated $2,000,000 in revenues. Other income statement relationships are expected to remain the same in year 2014 as they were in year 2013. Calculate the EBDAT breakeven point for 2014 for Level Up in terms of survival revenues