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(ii) In its first year, Sluggers Company had revenues of $300,000 and cost of goods sold of $210,000, which was the only variable cost. Depreciation
(ii) In its first year, Sluggers Company had revenues of $300,000 and cost of goods sold of $210,000, which was the only variable cost. Depreciation expense was $25,000, and cash expenses were interest expenses of $20,000, admin expenses of $50,000, and marketing expenses of $50,000 - all of which were fixed. What is the survival breakeven revenue (SR)? (Two points) (Hint: SR = CFC / (1 - VCRR), where CFC: cash fixed costs, and VCRR = variable costs / revenue)
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