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.

1. Steps to Black By Chris Prince 5

2. Calculate Overhead 1 By Chris Prince

3. By Chris Prince History or Projected Fixed Variable Office Utilities Salaries Vehicle Bonds Gas Travel Project

4. 2 By Chris Prince

6. 3 By Chris Prince CONVERT OVERHEAD TO of REVENUE %

7. By Chris Prince Our Overhead: Our Revenue: 184,000 $ 800,000 $ 184,000 .23 800,000 ÷ =

8. By Chris Prince 23 % of Revenue goes directly to overhead

9. 4 By Chris Prince IDENTIFY OVERHEAD & PROFIT

10. By Chris Prince Our Overhead: Our Profit: 23 % 10 33 % %

11. By Chris Prince 33 % OF ANY JOB GOES TO OVERHEAD PROFIT

12. 5 By Chris Prince IDENTIFY YOUR BLACK #

13. By Chris Prince OVERHEAD: PROFIT: 23 % 10 33 % % is this the black #

14. By Chris Prince DIRECT COST: 45,000 33 % $ + 59,850 $ 19,750.50 $ 40,099.50 $ -

15. By Chris Prince 33 % O & P of =

16. By Chris Prince 33 % O & P $ of = 67 % 45,000 of = ? ?

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

20. By Chris Prince All direct costs will be divided by .67

21. Steps to Black By Chris Prince 5