This company's mark up of 50% is well below the industry standard of 70%. The result is the company makes $16,000 less profit on gross margin the competitors that achieve the industry standard of 70%. c. Explain how the difference in this company's markup and industry markup rates affect profitability, or levels of the GPM? If this company had a 70% mark up on Cost of Good of $80,000, the company profit would be $56,000 vs the current $40,000. With the 70% mark up, if cost of goods stayed the same at $80,000 and the GPM at $56,000, the company's sales would be $136,000. Display This company's mark up of 50% is well below the industry standard of 70%. The result is the company makes $16,000 less profit on gross margin the competitors that achieve the industry standard of 70%. c. Explain how the difference in this company's markup and industry markup rates affect profitability, or levels of the GPM? If this company had a 70% mark up on Cost of Good of $80,000, the company profit would be $56,000 vs the current $40,000. With the 70% mark up, if cost of goods stayed the same at $80,000 and the GPM at $56,000, the company's sales would be $136,000. Display