Total Job =

Direct Costs =

Overhead =

Profit =

Calculates the profit margin per job. This is the percentage based on the cost charged to the customer less the overhead expenses and direct costs.

-Total Job: Total cost charged to the customer.

-Direct Costs: Direct costs of the project.

-Overhead: Percent of revenue that is allocated for overhead expenses.

-Profit: Percentage of the total cost to the customer that is profit on this project.

Calculate the actual margin of profit on a project where the customer was charged $119,000. The direct costs on this project totaled $86,000 and 23% of all revenue is to be budgeted for overhead.

-Total Job: $119,000

-Direct Costs: $86,000

-Overhead: 23%

The profit from revenue on this job is 4.73%.

Total Job

Direct Costs

Overhead

Profit

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