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.