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REFR Business Plan <br /> 8.2. BREAK-EVEN ANALYSIS: The Break-Even Analysis indicates what will be <br /> needed in monthly revenue to reach the break-even point. We calculated the break- <br /> even analysis based on a 60% gross margin. Our current monthly expenses include <br /> quite a bit of spending for marketing, community programs, packaging and <br /> misclaneaus spending. If need be those budget items could be reduced if we start to <br /> see excessive losses on a regular basis. <br /> Break even Analysis <br /> 10,000 <br /> 5,000 <br /> a <br /> 0 0 _ <br /> v <br /> c <br /> o <br /> -5,000 -Profits and Losses <br /> 0 <br /> a <br /> -10,000 -- <br /> -15,000 , <br /> $10k $20k $30k $40k $50k $60k $70k <br /> Monthly Revenue <br /> BREAK-EVEN ANALYSIS <br /> Monthly Revenue Break-even $45,132.17 <br /> Assumptions: %31.02 Net Margin <br /> Estimated Monthly expense _ $14,000.00 <br /> 8.3. PROFITS AND LOSSES: On the following page you will see a table that breaks <br /> down our projected profits and losses for the first 3 Phases of the business plan. <br /> Some of the monthly costs remain the same across the board, others would be <br /> scalable depending on gross revenue. Sales estimates are based on a $112.50 per <br /> hour average. Although the profit margins are small in this model we have used a <br /> conservative estimate to calculate our dollars per delivery hr. A small increase to the <br /> average $/delivery hour would mean a substantial increase in our net profit. For <br /> every dollar per hour above our estimated average we make an additional $2,015 per <br /> year in profits. At an average $/ delivery hour of$150 we would make approximately <br /> an additional $75,000 in net Profits ($125,000+ total) meaning a potential for a 50% <br /> ROI in our first year of opertions <br /> Annual Projected Sales <br /> 15 <br />