Share
3,662 Posts.
lightbulb Created with Sketch. 80
clock Created with Sketch. 14/06/15
01:03
Share
Originally posted by trythree
↑
No you've got that wrong. It costs them roughly $400k per month to 'run the business' and based on recent gross margins they'd need $2m of sales a month to cover those costs - or 'break-even', as per from's calcs.
Expand
I may miss something. My figure comes out gross margin around 15% (sale revenue 3.12 mil, cost of sale 2.64mil), loss 2.2 mil in 6 months. I think it may need 12 months gross profit around $6 mil (put a little bit extra due to expansion cost) to break even？At 15% margin, annual revenue need $40 mil, 20% margin $30 mil.
