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

Margin Leakage with quoted gross margin dollars of 6,500 $: a worked example

This worked example runs the margin leakage numbers for a tougher week than the baseline: quoted gross margin dollars of 6,500 $ instead of the typical 12,900 $. Estimate margin dollars lost between quoted and actual job performance.

The inputs for this scenario

  • Quoted gross margin dollars: 6,500 $ (the input this scenario stresses; the baseline uses 12,900)
  • Actual or forecast gross margin dollars: 9,400 $ (held at the documented default)
  • Quoted revenue leakage basis: 48,500 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: margin leakage dollars = quoted gross margin dollars - actual or forecast gross margin dollars.
  • margin leakage rate works out to -5.98 % at these inputs, and this is the headline figure for the scenario.
  • margin leakage dollars works out to -2,900 value at these inputs.
  • quoted gross margin dollars works out to 6,500 value at these inputs.
  • actual or forecast gross margin dollars works out to 9,400 value at these inputs.

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 183% below the baseline at -5.98 %.
  • 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. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

Results at a glance

  • margin leakage rate: -5.98 % (headline result)
  • margin leakage dollars: -2,900 value
  • quoted gross margin dollars: 6,500 value
  • actual or forecast gross margin dollars: 9,400 value

Run it with your numbers

  • To rerun this with your own numbers, open the live Margin Leakage calculator, set quoted gross margin dollars to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.