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The global margin % is not working as expected

for example. global margin of 0% gives a price exactly the same as the base price (from helloconnect)
setting global margin to 10%: product price is 11% of the base price.
setting global margin to 20%: product price is 25% of the base price.
setting global margin to 50%: product price is 100% of the base price.

In all cases, is looks like the global margin setting (percentage) is actually the percentage of the product price AFTER applying the markup... so not a percentage of the base price, but of the end price. This is very confusing.

The customer will pay more for a product than just 'base price' + 'base price*margin'.
It is not clear why this is, and who will recieve this in the end.