When a quote is created and the aircraft being quoted has a contract and a completed owner cost section, the Snapshot & Tools > Profit Analysis provides the operation an estimated Profit Percentage. The Profit Percentage is the % the operation will make on the quote. This guide will outline:

• the calculations of the profit analysis

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### PROFIT ANALYSIS CALCULATIONS:

Here is a detailed break down on how the profit analysis values are calculated based on the Contract, the Owner Cost regarding a specific quote situation

In this example the total POS (position) flight time is 0.4 and the total PAX (passenger) flight time is 6.1.

0.4 times \$3200 (this value is from the owner cost) = \$1,280
6.1 time \$3200 = \$21,120
Note: If operations have different rates and owner costs for PAX vs. POS, separating these calculations are ideal.

Example of the quote  Profit Analysis Results: Passenger Leg: 3.1 + 3.5 = 6.6 times the \$3200 owner cost hourly rate = \$21,120
6.6 times the \$4000 retail rate = \$26,400
\$26,400 - \$21,120 = \$5,280

Positioning Leg: 0.2 + 0.2 = 0.4 times the \$3200 owner cost hourly rate = \$1,280
0.4 times the \$4000 retail rate = \$1,600
\$1,600 - \$1,280 = \$320

Line Items: Set overhead on each line item, so the cost and profit can calculate. In this example, the 3 overnights have a \$100 profit on each. The customer is being charged \$600 times 3 and the cost is \$500 by 3, so the profit is \$300 (\$100 times 3) for the operator. Flight Mins/Short Leg Fees: The owner is getting paid 50% of the Daily Minimums based on the Flight Time with the owner hourly rate of \$3,200. 8 hours of daily minimums are required. Subtract 8 hours minus the 7 hour flight time = 1 hour. 1 hour times the \$3200 = \$3,200. 50% of \$3,200 is \$1,600. That is the cost for the operation to the owner. In this example, there is a \$400 Short Leg Fee and the owner DOES NOT collect, so that is a profit for the operator. \$1,600 plus the \$400 = \$2000 for the profit for Flight Mins/Short Leg fees for the operator.

Surcharge: \$4,680 is the calculated Fuel Surcharge. 100% is set to go to the owner. That is a cost to the operator.

Block Charges: The owner is set to NOT collect the Block Charges. \$3,200 goes to the operator. This is calculated by taking the BT (7.8) minus the FT (7.0) = 0.8 times the retail rate \$4,000 = \$3,200.

Profit Percentage: The percentage the operator is making on this quote scenario.

Example of the Contract and Owner Cost: Ref: S-A03