MarginWorkshopCrew Contribution Margin
See what a crew actually nets after its own direct labor and materials costs, before any shared overhead is allocated.
How we got here
- Crew labor cost = loaded rate × crew size × billable hours = $32.5 × 2 × 1600 = $104,000
- Direct costs = crew labor cost + direct materials = $104,000 + $40,000 = $144,000
- Contribution margin = crew revenue - direct costs = $250,000 - $144,000 = $106,000
Shared fields save automatically as you edit them. Review or edit everything in one place in your Business Profile, so every engine starts pre-filled.
Next Decision
Based on your results, these related decisions are available.
- Revenue per Crew BenchmarkCompare this crew's margin against what a crew its size should be producing.
- Next Crew Break-EvenUse this crew's real contribution margin to see whether a second one pays for itself.
- Working Capital Required for a New CrewUse this crew's real contribution margin to size the cash the new crew needs during ramp.
- Crew Bonus/Incentive Structure Break-EvenUse this crew's real contribution margin to check whether a bonus structure pays for itself.
- Operations Manager Break-EvenUse your real crew margin to value any cross-crew utilization improvement.
- Branch / Second-Location Expansion Break-EvenUse your real crew margin to see whether a second location pencils out.
- Salesperson Break-Even & Commission StructureUse your real crew margin to see what a salesperson needs to sell to cover their pay.
- Demand Needed for Another CrewUse this crew's real contribution margin to find the demand level a new one would need.
Methodology
Formula: crew labor cost = loaded rate × crew size × billable hours. Direct costs = crew labor cost + direct materials/subs. Contribution margin = crew revenue - direct costs.
Assumption: this engine deliberately does not allocate shared overhead (rent, insurance, owner salary). It answers whether a crew covers its own direct costs, a narrower question than whole-business profitability.
Limitation: materials/subs here means only costs tied directly to this crew's jobs. See Overhead Allocation & Break-Even Revenue for the whole-business view.