“Why is justification needed?“
Markup reflects the costs that go into presenting the product. The rough standard back in the day as far as I knew was one hundred percent. Something costs you a buck you try to charge two for it. Did this guy just pull 120.00 out of his ass or is he getting hit by his suppliers? I can tell you this, if his suppliers get wind of a monster markup like that THEY will mark up to get into the party.
I worked at a company in the early 80’s. The product was a step/repeat camera for printing silicon wafers. The initial price was 3X cost. That covered overhead and all else. We were well below the completion. The new CEO doubled the price. We were still well below the competition and the company did well. Should we have held the price down?