Cost of an item given Selling Price of $5,760 and a 28% Markup on Cost

Given: Selling Price = $5,760,  Markup = 28%
Markup as a Decimal: 28% = 0.28
Formula:
Cost =  

Selling Price/ 1 + Markup as a Decimal

Cost =  

$5,760/ 1 + 0.28

Cost =  

$5,760/ 1.28

Cost = $4,500
Notes:
Markup Amount = Selling Price – Cost = $5,760 – $4,500 = $1,260
Profit = Markup Amount = $1,260
Profit Margin =  

Profit/ Selling Price

=  

$1,260/ $5,760

= 0.2188 = 21.88%