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3. Compute the projected profit for the order quantities suggested by the management team under three scenarios: worst case in which sales equal 10,000 units, most likely case in which sales equal 20,000 units, and best case in which sales equal 30,000 units.
Subtract the companyâs total cash expenditures from its sales for the year to find the companyâs EBITDA. In this example, if the small business has $350,000 of sales, subtract $250,000 from $350,000 to find the companyâs EBITDA equals $100,000. Related Reading: How to Calculate an Operating Margin for a Business.