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Term | Definition/Calculation |
|---|---|
| Value | Sum of addition price for all agreements If annual, monthly value is from Total Value divided by 12 If monthly, with addition price, Value = addition price |
| BilledSum | of invoiced products monthly + service totalTotal billed of invoices |
| Profit | Billed - (Addition Costs + Labor Costs) |
| Margin | Profit / Billed |
| Addition Costs | Product cost for an agreement |
| Actual Labor Hours | Total recorded hours for an agreement |
| Effective Rate | (Billed - Addition Costs) / Labor Hours |
| Contribution Rate | Profit / Labor Hours |
| Target | Budgeted hours to achieve a certain profit margin |
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