Specifications include, but are not limited to: 1. Revenue is defined as gross sales. See definition of “Gross Sales” in Contract. 2. This line indicates the projected gross sales of services you propose to offer. 3. Total Revenue is the sum of lines 2, or more if you have added more category revenue 4. Cost of sales in line 4 should be all costs of the product/service sold. 5. Total cost of sales represents the sum of all costs itemized in line 4. 6. Gross Income represents Total Revenue (line 3) less Total Cost of Sales (Line 6). 7. Controllable Expenses are the expenses directly related to the operating revenue and controlled by on-site management. All controllable expense account line items should represent the total for all locations being proposed. 8. Salaries and wages include all regular salaries and wages, overtime and bonus payments to employees. 9. Employee Benefits includes all payroll taxes (FICA, etc.), social insurance costs (worker’s compensation, health, etc.), and any other benefits paid to employees including paid time off. 10. Direct Operating expenses include expenses directly involved in service to the customer that are not included in the cost of sales (Line 4). 11. Marketing expenses include all indirect operating costs associated with selling, promotion, advertising, public relations, and marketing research. 12. Energy and utilities include all expenses related to electricity, HVAC, water, waste removal, etc. 13. Administrative and General expenses are commonly considered as indirect costs of operation and include, but are not limited to, postage, telephone, accounting/audit, general and property insurance, and security. 14. The Repairs and Maintenance line includes repairs to furniture, fixture, equipment and maintenance contracts. These are expense items and not capital items as is the case with depreciation and reserve for replacement. 15. This line represents the total of all controllable expenses (Lines 7-14).
