Commercial Kitchen Equipment worked example

Project Margin with total project selling price quoted to client of 124,000 $: a worked example in commercial kitchen equipment

Here is what the math looks like when conditions slip. We hold every other input steady and drop total project selling price quoted to client to 124,000 $, then walk the calculation through step by step. Calculate overall project margin for a commercial kitchen equipment package including equipment, install, freight, and support costs.

The inputs for this scenario

  • Total project selling price quoted to client: 124,000 $ (the input this scenario stresses; the baseline uses 248,000)
  • Total delivered project cost: 207,500 $ (held at the documented default)
  • Revenue basis for margin calculation: 248,000 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Project Margin dollar gap = total project selling price - total delivered project cost.
  • project margin works out to -33.67 % at these inputs, and this is the headline figure for the scenario.
  • project margin dollar gap works out to -83,500 value at these inputs.
  • total project selling price works out to 124,000 value at these inputs.
  • total delivered project cost works out to 207,500 value at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where total project selling price quoted to client sits at 248,000 $ and the headline result is 16.33 %, this scenario comes in 306% below the baseline at -33.67 %.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to total project selling price quoted to client, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. It is a gross margin on delivered cost; it does not subtract overhead, sales commissions, or warranty reserves, so net profit will be lower.

Results at a glance

  • project margin: -33.67 % (headline result)
  • project margin dollar gap: -83,500 value
  • total project selling price: 124,000 value
  • total delivered project cost: 207,500 value

Run it with your numbers

  • To rerun this with your own numbers, open the live Project Margin calculator, set total project selling price quoted to client to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.