Overview
This report provides you with details about how your labor costs impact your profit margin. The key metrics it provides are Margin Minus Labor and what your % of your revenue is applied to cost of goods sold and labor. This report will only display data if your employees are clocking in and out and their compensation rates has been set in the employee payroll data screen. Use company codes to differentiate between sales and support costs. This report does not consider any inventory adjustments.
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Units Return - Total number of units returned by the employee
Labor Cost -is the cost spent on employee labor. This is hours of clocked in time times the pay rate as entered in the Employee ADP screen - rounded up. An employee that worked 7 hours and 5 minutes at $15/hour will display labor cost of $120 (8 hrs at $15/hr).
Gross Margin - Sales after discounts before taxes minus Cost of Goods Sold
MML - Margin Minus Labor - The Margin Minus Labor (MML) key indicator is a simple formula of subtracting labor from margin (gross margin minus employee labor). It removes the department’s largest variable expense and shows what sales remain to cover all expenses outside of labor. As this key indicator grows, the department is typically becoming more profitable, as it shrinks, less profitable.
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