Contract Manufacturing, Job Shop Quoting & Make-to-Order worked example

Contract Manufacturing Margin with quoted selling price for the job of 24,300 $: a worked example

Here is what the math looks like when conditions slip. We hold every other input steady and drop quoted selling price for the job to 24,300 $, then walk the calculation through step by step. Calculate gross margin for a quoted contract manufacturing job or customer program.

The inputs for this scenario

  • quoted selling price for the job: 24,300 $ (the input this scenario stresses; the baseline uses 48,500)
  • estimated total job cost: 35,600 $ (held at the documented default)
  • quoted selling price margin basis: 48,500 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: quoted gross margin dollars = quoted selling price for the job - estimated total job cost.
  • contract manufacturing gross margin works out to -23.3 % at these inputs, and this is the headline figure for the scenario.
  • quoted gross margin dollars works out to -11,300 value at these inputs.
  • quoted selling price for the job works out to 24,300 value at these inputs.
  • estimated total job cost works out to 35,600 value at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where quoted selling price for the job sits at 48,500 $ and the headline result is 26.6 %, this scenario comes in 188% below the baseline at -23.3 %.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to quoted selling price for the job, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. It is a gross margin on estimated cost only — it ignores SG&A, rework, scrap drift, and cost overruns, so realized margin is usually lower than quoted.

Results at a glance

  • contract manufacturing gross margin: -23.3 % (headline result)
  • quoted gross margin dollars: -11,300 value
  • quoted selling price for the job: 24,300 value
  • estimated total job cost: 35,600 value

Run it with your numbers

  • To rerun this with your own numbers, open the live Contract Manufacturing Margin calculator, set quoted selling price for the job to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.