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To achieve a gross margin or gross profit percentage of25%, you will need to mark up your product's cost by33.333%.
Gross Margin States that in equation Sales = Cost + Profit Sales will remain 100%
So if Gross margin is25% then the question should be:
At what percentage I should cost up my product?
Becuase Margin & Markup are two different concepts.
So,
100%=25% - Cost
and cost will be 75%
In concept of Markup:
Cost must be100%
So,
125% =100% +25%