How profit margin percentage is calculated in SAP?

[Expert]

Please let me know how profit margin percentage is calculated in pricing structure. Is it Profit Margin %age = Profit/Base price or selling price X 100 ?

Suppose my Internal cost PCIP is 1000, and my Base price PPR0 is 1600, Profit:600, In order to get 60% profit margin will my Markup percentage will be 150%?.Please let me know how profit margin percentage is calculated in pricing structure. Is it Profit Margin %age = Profit/Base price or selling price X 100 ?

Suppose my Internal cost PCIP is 1000, and my Base price PPR0 is 1600, Profit:600, In order to get 60% profit margin will my Markup percentage will be 150%?.

[Expert · Accepted solution]

From my understanding, the equation is right. When internal cost PCIP is 1000, and Base price PPR0 is 1600, the profit margin (tax excluded) is 60%.
No markup is needed.