Markup/Profits not populating correctly

We have a Markup Code set up for profit and all costs are set to 35 except commission which is 0. When I add a line in Opportunity/Quote and it generates the first quantity break of 1 and populates the fields under “Markup/Profits” it’s adding the 35% to all fields except for Material which is coming over at 0%. If I add a new quantity break then the 35% for Material populates.

Anyone have any ideas why that would be occurring? I ran a trace while performing these actions and didn’t find any useful information.