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EarnestDD

09/25/08 7:56 PM

#140411 RE: rainman99pa #140409

Aero's sales would have to increase 150% just to generate enough gross profit to cover the advertising and marketing costs.

And then they still have another $950k of salaries, G&A, outside services and rent expenses to cover.

To break even with a 40% margin, with other expenses remaining constant Aero would have to have sales of $3.5 million for the year.
That is a Huge increase from the $1 million a year that they have traditionally generated.
Aero will be continuing to lose money for this year and next year.
Breakeven continues to be a Pipe Dream.

Its a Terrible business model that Hunsucker has developed.