Question $8$ or $8$: After completing and reviewing the P&L projection for Delightful Bites Gourmet Ice Cream, how would you assess the company$$s projected financial performance?

The projections indicate strong revenue growth due to increasing the number of SKUs and expansion into more stores. SG&A costs, specifically employee expenses, have been increasing, but the benefits of operating leverage have outweighed this.

The company's growing gross margin percentage suggests that costs are being managed more effectively each year, and the company can expect to maximize profitability solely based on this trend.

The decline in EBITDA margin from $2023$ to $2024$ is a clear sign of deteriorating financial health, ignoring the subsequent recovery in $2025$ and the overall increase in EBITDA value.

With a consistent reduction in gross margin percentage and significant increases in employee costs, the company should consider downsizing to mitigate financial risk.