Gross Margin for contractors and subcontractors

[Sashtkd24]

Hello-

I am in need of some help on two scenarios. Here it is:

Scenario 1:
I want to sell this job at a 40% margin. What would my selling price be? What is the formula for it? I would also like to show the gross margin as a percentage, and the gross margin profit (as a number)

Item	Cost
Equipment A	$250
Labor	$100
Material	$55
Tax on material 6%	$3.30
Labor Burden 12%	$12
Job cost fee- dumping trash	$75
Total Cost	$495.30

Scenario 2:

In this scenario, I am introducing a subcontractor who will do a portion of my job. He charges me $300 and I want to mark it up 30%. What would be my new selling price if I want to sell it at a 40% margin?

I believe the Gross margin percentage will be affected because I am adding a subcontractor. Since I am adding a MARK up on the subcontractor and not a gross margin on the subcontractor.

Any help on this please?

Item	Cost
Equipment A	$250
Labor	$100
Material	$55
Tax on material 6%	$3.30
Labor Burden 12%	$12
Job cost fee dumping trash	$75
Subcontractor price to complete a section of the project	$300

Subcontractor MARK UP 30% ($300x30%)	$90
Total Cost
Selling Price

 

[akmatz]

For scenario 1. See formulas in 3rd column.

 

[Sashtkd24]

For scenario 1. See formulas in 3rd column.
View attachment 101217

Thank you for helping me with scenario one. My gross profit would be $330.20 on this job.