Question
How many cups of frozen yogurt would have to be sold in order for the firm to reach its projected revenues of $1.2 million? NOTE:
How many cups of frozen yogurt would have to be sold in order for the firm to reach its projected revenues of $1.2 million?
NOTE: Each small cup of yogurt is sold for $3 and the cost of producing the frozen yogurt is $1.50 per cup. Admin. expenses, including Jen and Larry's salaries along with 2 other accountants were estimated to be $180,000 in 2013. Marketing expenses, advertising were projected to be $200,000 in 2013. Interest expenses were estimated at 15,000. The average tax rate is expected to be 25% of taxable income.
Equation: EBDAT= Revenues- Variable Costs- Cash fixed costs
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