I am struggling with this question. Please explain. Thank you
In its first year, JustWin 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 $5,000 in financing costs, admin expenses of $50,000, and $45,000 in marketing expenses - all of which were fixed. What is the survival breakeven revenue?
VC Variable Cost??
CFC Cash Fixed Cost??
SR Survival Revenue??