Confused about Gross Profit Margin compared to Markup ?

Don’t be – Use Markup to create Selling Prices and Use GP% to record Profit from a sale. If GP = 50% that means 50% of your sale price is your COGS and the other Half is your Gross Profit (GP). So to get a 50%GP you need to double your cost or give it a 100% Markup. GP% should always be Displayed and recorded from Average Cost. Never ever anything else otherwise the accepted accounting principle of Cost of Goods Sold (COGS) = Opening Inventory value + Purchases value – Less Closing Inventory value won’t work.