5 Steps to Black - Identify overhead, identify revenue (history or projection), convert overhead to a percent of revenue, add profit, identify the black number. The "black number" is what you use in the computation for all bids to ensure you cover direct costs, overhead and meet your goals for profit. Speaker notes available upone request.
17. By Chris Prince 33 % O & P $ of = 67 % 45,000 of = 45,000 ÷ .67 $ 67,164.18 =
18. By Chris Prince DIRECT COST: 45,000 33 % $ + 59,850 $ 19,750.50 $ 40,099.50 $ DIRECT COST: 45,000 67 % $ ÷ $ 22,164.18 $ 45,000 $ 67,164.18
19. By Chris Prince DIRECT COST: 45,000 33 % $ + 59,850 $ 19,750.50 $ 40,099.50 $ DIRECT COST: 45,000 67 % $ ÷ $ 22,164.18 $ 45,000 $ 67,164.18 RED BLACK