Golden State Elixirs: Should We Obtain a Canna-Business License?

a. Ignoring all taxes, calculate the breakeven number of cases for 2017. Remember that no licensing costs were incurred in 2017. HINT: find the variable costs per batch, then scale up or down as needed. Provide summary calculations

b. Assuming an 12% flat aggregate tax rate calculated on SALES, calculate the number of cases that must be sold in 2018 to cover the licensing costs, assuming Golden State Elixirs decides to obtain all licenses.

c. Assuming the 2018 sales projections are met (see instruction #6 in the case), will Golden State Elixirs be profitable in 2018 if they decide to obtain all licensing under the 12% flat tax assumption? Prepare an income statement with monthly and yearly data to support your answer.