Masterwork items...<br/><br/>Judging by the difference between a normal backpack and Masterwork backpack, between regular tools and masterwork tools, it appears that the added cost is 50 GP.<br/><br/>I would disagree that the cost of the item to be enchanted is included in the 1/2 cost. Mainly because this can be abused with special material items. A mithral chain shirt is 1,100 GP. It is NOT a magical item, just a masterworkedd shirt. However, if you included it's cost as part of the enchantment cost, then you're actually enchanting it for no cost... making 100 gold on what is suppose to cost you something to do. Lets not get into Adamantine and other materials.<br/><br/>Most small items, such as broaches, pins, headbands and belts are so realitively inexpensive that including them into the retail price is a minor  expense... It only cost you 1,000 GP to do the spell work, so if you're only making 700 GP... well, it's still a sizable profit, right?<br/><br/>As an example. Lets say that you want to make a Amulet of Natural Armor +1. The cost of the amulet is probably less than 14 GP. By the time you spend the GP to enchant it, that cost is minimal when you sell it. The profit margin is still somewhere around 95%.