Gross profit is the accounting basis this industry is based on not mark up and you should learn the difference.
Remember your profit and loss is based on Gross profit NOT mark up
40% Gross Profit on a cost of $1.80 is $3.00
40% mark up on $1.80 is $2.52
To calculate Gross profit you take the cost for example $1.80 and if you want to make 40% Gross Profit you divide the cost by .6
$1.80 / .6 = $3.00
If you want to make 30% then you divide by .7
The Gross Profit is always the difference to make up 1
