Project Revenue (Billing) is the total amount of money a Customer pays for a project. We will be getting Billable amount from customer. Cost is the total funds needed to complete the project or work that consists of a Direct Cost and Indirect Cost. We will be getting cost from in house finance team. The Operating Margin measures how much profit a company makes from the project on a dollar of sales after paying for variable costs of production, such as employee wages, software and hardware, but before paying interest or tax. Case study: One developer working on a project which is planned to complete in one month (ie: 8 hrs/day * 20 days/month = 160 hrs). Billable amount from the customer is 25$/hr and Cost from Employer is 20$/hr. Revenue = $4000 Cost = $3200 Revenue Margin = Revenue - Cost = $4000-$3200 = $800 Revenue Margin Percentage (%) = (Margin/Revenue) * 100 = (800/4000)*100 = 20% We can say that, the project is running with 20% profit. Assume due to incor...
We will either find a way, or make one.