If revenue is $100 and variable costs are $50, what is EBITDA if the total expenses equal 20?

To determine EBITDA, we need to start by defining what it represents. EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's overall financial performance and serves as a proxy for cash flow.

In this scenario, you are given revenue of $100 and variable costs of $50. To find EBITDA, we typically calculate it using the formula:

EBITDA = Revenue - Costs (which includes both variable and fixed costs)

Since variable costs are provided and we also have total expenses, we can analyze this situation as follows:

1. Revenue is $100.

2. Variable costs are $50.

3. Total expenses equal $20, which could encompass fixed costs or other considerations.

Now, we calculate the initial profit before subtracting fixed costs:

Profit = Revenue - Variable Costs = $100 - $50 = $50.

Next, since total expenses equal $20, and this figure likely indicates additional costs that should be included in our EBITDA calculation, we need to account for these expenses.

Thus, we calculate EBITDA as:

EBITDA = Initial Profit - Total Expenses = $50 - $20 = $30.

This computation clearly shows that the EBITDA in this case is $