How is job profit calculated?

Knowify's profitability calculator updates in real-time based on the material, labor, and subcontractor costs, versus the revenue invoiced to the customer. The calculations for profit use the formula for Gross Profit Margin. This formula represents the margin over sales:

Job Profit Margin = Job Profit / Job Revenue where Job Profit = Revenue - Cost.

If in the Customize section you enable the option of factoring Work-In-Progress (WIP) into job profit calculations, then the formula is adjusted as follows: 

Job Profit Margin = (Job Profit + WIP) / (Job Revenue + WIP).