In 2010, Jennifer (Jen) Liu and Larry Mestas founded Jen and Larrys Frozen Yogurt Company, which was based on the idea of applying the microbrew or microbatch strategy to the production and sale of frozen yogurt. [The involved reader may recall that we first introduced this yogurt venture in the problems section at the end of Chapter 2.] Jen and Larry began producing small quantities of unique flavors and blends in limited editions. Revenues were $600,000 in 2010 and were estimated at $1.2 million in 2011. Because Jen and Larry were selling premium frozen yogurt containing premium ingredients, each small cup of yogurt sold for $3 and the cost of producing the frozen yogurt averaged $1.50 per cup. Administrative expenses, including Brandies salary and expenses for an accountant and two other administrative staff, were estimated at $180,000 in year 2011. Marketing expenses, largely in the form of behind-the-counter workers, in-store posters, and advertising in local newspapers, were projected to be $200,000 in year 2011. An investment in bricks and mortar was necessary to make and sell the yogurt. Initial specialty equipment and the renovation of an old warehouse building in Lower Downtown (known as LoDo) occurred at the beginning of 2010 and additional equipment needed to make the amount of yogurt forecasted to be sold in 2011 was purchased at the beginning of 2011. As a result, depreciation expenses were expected to be $50,000 in year 2011. Interest expenses were estimated at $15,000 in 2011. The average tax rate was expected to be 25 percent of taxable income.

2. Calculate the dollar amount of EBDAT if Jen and Larrys Frozen Yogurt Company

achieves the forecasted $1.2 million in sales for year 2011. What would EBDAT be as a

percent of revenues?

can you help to slove this one, I don't know how to get EBDAT by using the formula that EBDAT=revenues-variable cost- cash fixed cost