Business & farm

I understand what Volvo girl is explaining. My question lies within the tax ratio.  For instance,  I buy a 2x4 for 5 dollars, I install it for my client.  I claim the 2x4 expense on schedule C line 27a. I get 1.25 credit.  Therefore, I'm only receiving a portion of materials I buy not for personal use, but am given a portion of the expenditure.

Can anyone help me understand this?