I'm working on an analysis of construction projects, and I'm having trouble conceptualizing how IMPLAN handles the materials purchased at retail stores in terms of the retail margins. Suppose for example that someone is doing a $1 million construction project, and $500k of that will be spent on materials and the rest on labor. I want to use the built-in spending pattern for single-family housing for the materials portion of the analysis. My understanding is that the spending pattern allocates the retail margin to retail services, which is basically the margin the store takes to make all of the other items available for purchase. But the remainder would be allocated to the sectors that make the materials the construction firm would need to build the project. In other words, in my $500k hypothetical example, if there is a retail margin of 20%, $100k would go to retail services, but the remaining $400k would be allocated to the sectors that produce the wood, concrete, etc., that are used in the construction of the houses. Please let me know if I'm thinking about this correctly.
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