How Much Should I Charge?:
Pricing Basics for Making Money Doing What You Love

By Ellen Rohr
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While she never uses the phrase ‘Capacity Based Markup’ in plain simple language that anyone can understand Ellen Rohr lays out and explains the mechanics of setting a price for your work using what is essentially a ‘Capacity Based Markup’ methodology.

Also I highly recommend her companion book:

Where Did The Money Go?- Easy Accounting Basics for the Business Owner Who Hates Numbers

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It a great book for gaining a simple understanding of the accounting basics as contractors we often seem to skip over when we first go into business and don’t really pick up on or get interested in until we’re inspired by a crisis.