Bid Calculation

Question 1

True or False - in the case of a negative contribution margin the customer price of the respective product or order has to be increase

Answer 1

True, a negative contribution margin indicates that the variable costs exceed the revenue and that no contribution to fixed cost coverage can be made by this product or order

Question 2

Business Models to avoid margin stacking

Answer 2

Open Consortium or Contract Split

Question 3

Milestone when bid calculation gets transferred to OEC

Answer 3

PM080

Question 4

Contribution Margin calculation

Answer 4

Revenue (KP2) - variable costs

Question 5

Ebit calculation

Answer 5

Rev - CoS = sales margin
-Other Cost of Sales
= Gross margin
-SG&A
-R&D
=Ebit

Question 6

Cash Conversion Rate

Answer 6

Free Cashflow / Profit

Question 7

EVA Calculation

Answer 7

Project Profit
- Income Tax
=NOPAT
- Capital costs
=Project EVA

Question 8

Examples Inclusions

Answer 8

Commission Payments, Guarantees, bank charges - calculated on KP1