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

Margin Leakage with quoted gross margin dollars of 32,300 $: a worked example

This scenario runs the margin leakage calculation on the strong side: quoted gross margin dollars of 32,300 $, with every other input held at its documented default. reviewing jobs that shipped below quoted profitability

The inputs for this scenario

  • Quoted gross margin dollars: 32,300 $ (raised for this scenario; the documented default is 12,900)
  • Actual or forecast gross margin dollars: 9,400 $ (unchanged)
  • Quoted revenue leakage basis: 48,500 $ (unchanged)

Working through the calculation

  • Applying the documented formula (margin leakage dollars = quoted gross margin dollars - actual or forecast gross margin dollars) to the inputs above produces each figure below.
  • At this operating point the engine returns 47.22 % for margin leakage rate, the number this scenario is built around.
  • At this operating point the engine returns 22,900 value for margin leakage dollars.
  • At this operating point the engine returns 32,300 value for quoted gross margin dollars.
  • At this operating point the engine returns 9,400 value for actual or forecast gross margin dollars.

How this compares with the baseline

  • Against the tool's baseline example, where quoted gross margin dollars sits at 12,900 $ and the headline result is 7.22 %, this scenario comes in 554% above the baseline at 47.22 %.
  • Use it at job close-out or mid-job to quantify how far realized margin has drifted from the quote, and to compare leakage across jobs, customers, or part families. Treat this as a target state: the delta against the baseline quantifies what the improvement is worth before you commit to chasing it.

Results at a glance

  • margin leakage rate: 47.22 % (headline result)
  • margin leakage dollars: 22,900 value
  • quoted gross margin dollars: 32,300 value
  • actual or forecast gross margin dollars: 9,400 value

Run it with your numbers

  • Every input above is editable in the live Margin Leakage calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.