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Now assume that, due to competition, Jen and Larry must sell their frozen yogurt for $2.80 a cup in 2020. The cost of producing the
Now assume that, due to competition, Jen and Larry must sell their frozen yogurt for $2.80 a cup in 2020. The cost of producing the yogurt is expected to remain at $1.50 per cup and cash fixed costs are forecasted to be $395,000. Depreciation expenses and tax rate are also expected to remain the same as projected in the intial discussion lf Jen and Larry's venture. Calculate the EBDAT breakeven point in terms of survival breakeven revenues.
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