Selling Price after a 37.5% Profit Margin is applied to an item that Cost $450

Given: Cost = $450,  Profit Margin = 37.5%
Profit Margin as a Decimal: 37.5% = 0.375
Formula:
Selling Price =  

Cost/ 1 – Profit Margin as a Decimal

Selling Price =  

$450/ 1 – 0.375

Selling Price =  

$450/ 0.625

Selling Price = $720
Notes:
Profit = Selling Price – Cost = $720 – $450 = $270
Markup Amount = Profit = $270
Markup Percentage =  

Markup Amount/ Cost

=  

$270/ $450

= 0.6 = 60%