Gross profit
$15,000.00 revenue − $10,000.00 direct cost
The math
$5,000.00
What it tells you
Per illustrative job. Direct cost classifications depend on your records.
Industries / Business Track
Construction and Trades
Price the job, plan collections and separate the wage from the full cost of labor.
Work through your numbersIllustrative math / Not industry benchmarks
Five numbers to put in context.
These are selected teaching inputs, not typical prices, targets or claims about this industry. Use your own costs and timing.
Examples use made-up numbers. Education only, not tax, legal or investment advice.
Gross margin
Gross profit ÷ revenue × 100
The math
33.3%
What it tells you
Margin uses revenue as its denominator.
Markup
Gross profit ÷ direct cost × 100
The math
50.0%
What it tells you
Markup uses cost, not revenue.
Break-even volume
$20,000.00 fixed costs ÷ $5,000.00 contribution
The math
4
What it tells you
Illustrative jobs, rounded up. Here variable cost is assumed equal to direct cost.
Net cash movement
$15,000.00 cash received − $30,000.00 cash paid
The math
−$15,000.00
What it tells you
One illustrative period; receipts and payments are assumed to occur in that period. Not accounting profit.
The Owner Track Letter / Construction and Trades
Keep your next decision in view.
Choose your tracks. Your industry is included with your signup.