Contribution Margin Collapse
Margin / base / 3 to 6 months
What it detects
Revenue mix is shifting toward lower-margin project work, reducing the blended profitability of the business.
Why it matters
When the revenue mix drifts toward lower-margin project work, the business earns less profit on every dollar it books even if the top line looks steady or is growing. That erosion is easy to miss because sales still look fine, yet the blended margin that funds payroll, overhead, and reinvestment is quietly thinning. Left unaddressed, the company ends up working harder for the same revenue while keeping less of it, and a mix that keeps sliding can turn a profitable book into a break-even one.
Severity levels
- MEDIUM
- HIGH
Thresholds
Exact thresholds, formulas, and severity bands are omitted from this public view. The full methodology, with every figure, is available in the authenticated app.
How it connects
Blended margin impact of mix shift: ~[redacted]/month in margin dilution versus a pure-retainer model.
Sources
SEE IT ON REAL NUMBERS
The exact thresholds, the formula, and your own figures are in the authenticated app. See it against a real, simulated dataset for Integra Executive Services, our public demo company, or connect your own QuickBooks Online account.