When a new part is added to the Parts list, and either Average Cost (for normally stocked parts) or Current Cost (non-normally stocked parts) is entered, the Retail price will be calculated as specified in the Price Matrix Setup window.
When the Apply Markup flag is selected, the retail price will equal the current cost and the Price Matrix setting value otherwise the retail price equals the entered value.
If the Price Matrix Setting is a Markup %, then Retail price equals:
current cost plus (current cost multiplied by the price matrix percentage.
If the Price Matrix Setting is a Profit Margin%, then Retail equals:
Current cost divided by 1 minus the (profit margin/100)
[Note if profit margin is 40%, 40/100 = .4 and 1 minus. 4 equals .6, so retail = current cost/.6].