b'BUSINESSMATTERSLook at your overhead levels, by now as lean as possible. This is your monthly nut that you need toTwo Examples of Generating Multiples of Revenue cover. Perhaps the metric is Free Cash Flow (addingto Cover New Costs mortgages and capital expenditures) instead of a tra-ditional EBITDA (earnings before interest, taxes, de- Revenue Pro t/Loss Marginal preciation, and amortization).1 $0 -$100,000 Contribution- This might take a bit of estimating as some expenses,60%like rent, may provide temporary relief or might become permanent.This operation will need $167,000 a month to reach break Measure this new nut as compared to your past nut.even sales ($100,000 loss divided by .60, or $167,000) Most likely it will not have dropped as much in terms of percentages as your sales have. Thus, let us dig evenRevenue Pro t/Loss Marginal deeper.2 $50,000 -$100,000 ContributionCalculate how much an incremental dollar of new80%revenue contributes to covering your overhead. Breaking this down to simple terms may help. A sightseeing product might be 100 cents, while aThis operation needs to cover $100,000 of losses, or dinner cruise might be 60 cents. Depending on your$125,000 of new revenue ($100,000 loss divided by .80, product and direct expenses, 50 to 80 cents per in- or $125,000 of added revenue is needed to achieve break-cremental dollar of sales can be the contribution toeven sales point.) Add this $125,000 of added revenue to the $50,000 already acquired, the break-even point is now your nut. From this, then calculate your break-even$175,000 a month in sales.sales level.WORLD-CLASS VESSEL DESIGNHIGH-VALUE SHIPYARD SUPPORTTRUSTED CONSULTANTSKILLED GOVERNMENT CONTRACTORRIVER86FT RUNNEROVER 100 PROVEN DESIGNS FOR A WIDE RANGE OF CUSTOMER REQUIREMENTSHIGH-SPEED MEDIUM-SPEEDPASSENGER RO/PAXHIGH-SPEEDRIVER RUNNER RO/PAX703-920-7070|INQUIRIES@BMTDP.COM|WWW.BMT.ORGOCTOBER 2020FOGHORN 31'