In its first year, Joe's Start-Up Company had revenues of $125,000 and cost of goods sold...

 

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In its first year, Joe's Start-Up Company had revenues of $125,000 and cost of goods sold of $81,250, which was the only variable cost. Depreciation was $20,000, and cash costs were as follows: $5,000 in financing costs, admin expenses of $50,000, and $45,000 in marketing expenses - all of which were fixed. The sales price per unit is $4. What is the EBDAT breakeven in terms of number of units? In its first year, Joe's Start-Up Company had revenues of $125,000 and cost of goods sold of $81,250, which was the only variable cost. Depreciation was $20,000, and cash costs were as follows: $5,000 in financing costs, admin expenses of $50,000, and $45,000 in marketing expenses - all of which were fixed. The sales price per unit is $4. What is the EBDAT breakeven in terms of number of units?

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To calculate the EBDAT breakeven in terms of the number of units we need to determine the contributi... View the full answer