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Wednesday, June 20, 2007 1:19:31 AM
This for a total gross profit before SG&A expenses of $232,300. Assuming $407,700 in SG&A with no decreases in SG&A and no increases (we better not have increases) that would leave us at a net loss of nearly $175,000.
I think this is a pretty solid calculation and estimate in my opinion.
Like I said in the same post about cost/unit, currently we need 2400 units to break-even, obtainable YES, should we need that many to break even, NO. $407,700 SG&A for this currently small company is a joke. I mean how many employees do we have? 20. If so you and I know salary and benefit expense make up nearly 80% or more of a company's expenses when we have already broken out cost of goods sold. So that would be $65,000/year for each employee (assuming 20 employees, I don't think we have that many). A little much for a startup company. Are we just selling CTs and stock so that these guys can have a paycheck. It's not like the expenses for maintaining our offices should be much as someone has shown with the pictures of the office.
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