Profit Modeling with BreakEven PLUS™

📊 Profit Becomes Predictable When Every Source Is Modeled Separately

Profit is not unpredictable — it is only invisible when it is blended into one line.
BreakEven PLUS™ with FALIB® reporting makes profit measurable and defendable because it models the full labor cost stack first, then shows profit by source, by expression, and by impact before a price is submitted.

BreakEven PLUS™ is used across:

• ✅ Private commercial projects

• ✅ Public and infrastructure contracts

• ✅ Federal and regulated work

• ✅ Labor-intensive construction with insurance and indirect load

It works the same in each environment because it models cost truth first — not assumptions.

🚧 The Problem: Most “profit” is an afterthought

When profit is treated as a single row at the end of a spreadsheet:

• True gain on labor is unknown

• Pass-through profit is either hidden or assumed

• Indirects are not allocated to reality

• Margins look “diluted” when dollars actually increased

• Executives see totals — but not the sources holding or destroying profit

Profit built this way is not just blurred — it is undefendable.

✅ The BreakEven PLUS™ / FALIB® Solution: Profit is exposed, not implied

BreakEven PLUS™ calculates and displays profit in multiple dimensions so there is no ambiguity:

💰 Labor Profit

• Labor profit markup (%)

• Labor profit margin (%)

• Labor profit as a dollar amount

• Labor profit per hour

🧾 Pass-Through Profit (COGS / Subs / Other Directs)
BreakEven PLUS™ calculates markup and then expresses the blended pass-through profit as both a margin and a lump-sum dollar result.

This is where FALIB® corrects an industry myth:
Others claim “large pass-throughs dilute margins.”
BreakEven PLUS™ shows the reality — large pass-throughs can increase total profit dollars even if percentage margin falls, because indirect infrastructure is already in place and not re-incurred. FALIB® separates these effects so the picture is accurate, not opinion.

📌 Combined and Final Profit Views

After modeling labor, ripple impacts, surpluses, indirect labor, operations, hourly breakdowns, cost of money (when applicable), pass-through components, total cost input with G&A, and gross revenue — FALIB® outputs:

• Combined profit markup (all sources)

• Combined profit margin (all sources)

• Combined profit dollar amount (lump sum)

• Final net margin after non-allowables (only when relevant to federal cost forecasting in GovCon market)

BreakEven PLUS™ does not “estimate profit” — it renders it explicitly in our Forecast Analysis Labor Intensive Business (FALIB®)

🎯 Why this matters:
Profit visibility turns into control —
Pricing is a decision | Negotiation is defensible | Assumptions become dollars | Bids stop failing in the field.
BreakEven PLUS™ makes profit structural on day one, not discovered at the end.