Boeing's Deferred Cost of 24.5 Billion

Boeing has 674 undelivered 787's. If all were delivered it would need $38.3 million contributions from each delivered aircraft. Fortunately for Boeing, it has booked more orders and will book more orders by year's end. 

Deferred Costs Soaks The Monopoly Man At Boeing

When building and delivering at least 135 units a year, Boeing may exhaust that backlog over the next five years as it approaches the 1400 unit block point it has established after announcing these unit numbers for eliminating the deferred balance. 

The 1400 unit block requires a $34.2 million per unit surplus as a goal when having five years for building 716 units as an example by 2024. It's a good prediction that is influenced by a more profitable 787-9 and -10 in the production works than its less profitable 787-8 which are already optimized on the production line.

In conclusion, Boeing already has 716 backlog units even though not all booked at this time, but it should exceed that number when posts its August report for July 2018. Therefore, the profit dollar must maintain an average of $34.2 million dollars per unit (profit margin ) delivered over the next five years in order to reduce its 787 deferred cost balance, which has now dropped to $24.5 billion from the $28 billion benchmark.

By 2024 Boeing may add another 500 units to its backlog than it has today even when building 144 787's a year at a 12 a month rate. The deferred balance total is a solid bullseye in Boeing's sights.