Overview
Pacific Solutions' management systems utilize a gross profit margin (gross margin ratio) method for reaching desired sell prices. There is a difference between gross profit margin (GPM) pricing and mark up (MU) pricing. This definition from www.accountingtools.com will assist in learning the different definitions around gross profit, gross profit margin/ratio and markup.
Definitions
Margin Definition
Margin (also known as gross margin) is sales minus the cost of goods sold. For example, if a product sells for $100 and costs $70 to manufacture, its margin is $30. Or, stated as a percentage, the margin percentage is 30% (calculated as the margin divided by sales).
Markup Definition
Markup is the amount by which the cost of a product is increased in order to derive the selling price. To use the preceding example, a markup of $30 from the $70 cost yields the $100 price. Or, stated as a percentage, the markup percentage is 42.9% (calculated as the markup amount divided by the product cost).
Cited from: https://www.accountingtools.com/articles/what-is-the-difference-between-margin-and-markup.html
This table can be helpful in understanding the multiplier for desired gross profit margin percentages:
Margin Multiplier Table for GPM
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