SYNTHETIC EXAMPLE · NOT A CUSTOMER REPORT
Office account A: revenue exceeds included costs, but misses the target margin.
This sample shows the kind of evidence and decision questions delivered in a Contract Margin Screen. Figures are illustrative and do not describe a real customer or guarantee a result.
Inputs and assumptions
One fictional office-cleaning account, one month, US dollars. The 25% target is an illustrative planning assumption, not an industry benchmark.
- Revenue: $4,500.
- Labor: 140 paid crew hours × $22 fully loaded hourly cost = $3,080.
- Direct supplies, travel and subcontractor costs: $620.
- Allocated overhead: $400.
- Total included costs: $3,080 + $620 + $400 = $4,100.
Estimated profit before any excluded costs is $400 ($4,500 − $4,100). Margin is $400 ÷ $4,500 × 100 = 8.9%. Income tax, financing costs and any unrecorded owner time or other costs are not included. Confirm the cost categories and avoid counting the same item twice.
What the screen found
At a 25% target margin, the same monthly cost pattern implies a review price of $5,467. The gap is a discussion prompt: verify paid hours, rework, access delays, supplies and scope before changing a customer’s price.
Questions to verify
- Which hours were routine service, rework or added scope?
- Are supervision, travel and employer costs included once?
- What service level and renewal date constrain the decision?
Possible next actions
Bring the dated hours and cost record to the next account review. Compare price, scope and staffing scenarios together; this screen does not decide what a customer will accept.
Cleaning Contract Margin Review · AI-assisted analysis with documented arithmetic and assumptions · Analysis support only · Not accounting or legal advice