PRICE INCREASE ANALYSIS (This model incorporates Nies suggested adjustments to expenses and assumes N59CH accomplishes a 300.0 Flt Hrs Level-of-Effort in 2011) AIR CENTER HELICOPTERS, INC. 1.4 Chain Firs II Ekd 208 • 189:34) 49.015 589.144 Total Revenue (Sales) 49.095 589.144 Arcrat Lease Parents 10200 laso3 24811 Areal Insiran:e (ll&L.T1.0. Wu) 2223 Most Maintenance 333 I (CA; 8093 4.0(0 11.240 Mpal among Face Ariake Fuel /01/Luboands 79.800 Cannata Re 10413 1 124.950 Conrad Labor ISenkes 2E8 2.845 114 Customs 8 krnigalen Fees 144 Total Cost of Sales 34 541 414,489 Gross Profit 14355 174.655 Broken Benefits 4.112 r 49.348 knew= • dun 8 Propedy 1580 83 Lease • Rod 18.093 amore=8 Rapers 1.000 Papal expenses 548 7.175 131 000 1.503 Sday incenses 10017 Sties Commissions 125 SLpfies lofice and spading) Telephone & Internet Sarkis 313 250 4.000 Mks 3.000 1.500 Mac. (unspecited) 20B Total Expenses Net Profit 217.521 13.512. mow Revenue (Sales) 1.98181 Estimated (inclusive of Customs) Assumes a 31.850 per fight hour price Cost of Sales 432.00 Per Fight /lour based en 300 annual digit hours 88.80 Per Flight Hour based on 300 annual fire hairs 13.33 Per Flight Hour based on 300 annual light bars 40.80 Per Flight Hour based on 300 annual fight hours 268.00 Per Fight /lour based en 300 annual 841 hours 418.50 Per Fight /lour based en 300 annual We hours 10.38 Per Flialt Hour based on 300 annual fight bars 113.81 Per Fight /lour based en 360 annual Bight hours Assumes a 310.800 mthly base pmt You told me the lease was 19.000. Why higher now? Based al current rates figires How was this number derived? Taken from 2010 for both Ilk 859th Hccnogeneed cant based al 2010 figures pm month. The should be less based on only 1 helo How was this number derived? 38 gallons x $7.00 x 300 hrs Based MI a 3418.50 per has DOC Homogenized cast based an 2010 figures per month. Horn was this number darned? Wrong number. Should be based on 1 aircraft not 2. Not sulficent Gross profit to expenence a break.even l no profit operation 184.49 Per Fight /lour based en 300 annual RgN routs 0.00 Per Fligta How based on 303 anrual num hours 130.03 Per Flight Hour based on 300 annual fight harts lessee. 3.33 Per Fight Hair based on 303 anrual lion hours 23.92 Per Flight Hour based on 300 annual fight harts 43887 Per Fight Hour baled en 300 annual Rigid horn 0.03 Per NM How based en 303 anrual nghl hours 5.03 Per NM Has based on 303 annul 8ghl hours aircraft and minaret crew from 2010 13.33 Per Flight Hour based on 300 annual fight hates at 'Mess than 2010- 10.03 Per Flight Hour bees on 300 annual fight haws hangar means 1/3 cost of utilities 8.33 Per Flight He.: based on 303 arnual 8ghl hours based on 1 aircraft and minimal crew Requires recalculatian area employees have been iderdified Nicolas full time only. Assumes na verde, in swoon of base. What agreement is in place / n process to substartate? ACIII Innen% lease. Subleases 213. Or ACIII subleases from new Since no Halo exists sepportrig Utis amoral.need dewed con for the services anticipated? aMIn am*, Requires recalculaton area employees have been identified Nicolas lul lime. 2 pad time What employees does ths cover and at what LOE hAnt same. MIR 13 days per quarter. Jay same as now. No commissions / reduced prking sUucture lo be used? 1850 base price. Commission on lop of that if requied What the the bases rally budget reqiirerneras and for what type materials / service? Reduced supplies based on 1 Since no hstory exists succoring this amoint need defined cons for the services clawed? Should probably be estimated Since no hstory exists supporting this amoral. need defined cons for the services clawed? Based on 2010=1(3 of Since no hstory exists suppartrg this amoral. need defined cons for the services clawed? Estimate half from 2010 Projected Net Loss EFTA01164912 Rt“ ket.n.nolupel Page 1 of 2 Prrt DeWTwee 91112011:1203PM EFTA01164913 PRICE INCREASE ANALYSIS (This model incorporates Nic's suggested adjustments to expenses and assumes N59CH accomplishes a 300.0 Flt Hrs Level-of-Effort in 2011) Revenue (Sales)! Flight Hour (FH) Increase Analysis - Based on Estimated Total Flight Hours (300.0) for 2011 Rowney lbased al tee 20614) 0.06 559 144 1.963.81 Per Fight Hour based on 300 annual Iliglt hours Assumes a 51.850 per eight hour price FH %an (based co 6011203LS) 25 3A.0 Mg R. per FH • EXPERIENCED 1850 1850 1.850.00 Per Fight Hour based on 300 annual Digit hours Mg FH frame • REWIRED 143 142.19 Inasasel FH Rite • REWIRED 1.89218 1.90249 Per Fight Hour based on 300 annual Rigli hours Bre* even - no profit Total Revenue (Sales) 52.887 632.010 Required Gross Profit Required 18.127 217,521 - - Break even . no profit Net Profit (Assumes Rev/Gross Profit Goals Mel) Analysts does not include any Overhead / I ODC charges !escalation factors. R4/1 Art130/1O14 rrcui Page 2 of 2 PIK 1)414,11•14: S11117111 1. .4 - EFTA01164914