Selling Price after a 36% Profit Margin is applied to an item that Cost $120

Given: Cost = $120,  Profit Margin = 36%
Profit Margin as a Decimal: 36% = 0.36
Formula:
Selling Price =  

Cost/ 1 – Profit Margin as a Decimal

Selling Price =  

$120/ 1 – 0.36

Selling Price =  

$120/ 0.64

Selling Price = $187.50
Notes:
Profit = Selling Price – Cost = $187.50 – $120 = $67.50
Markup Amount = Profit = $67.50
Markup Percentage =  

Markup Amount/ Cost

=  

$67.50/ $120

= 0.5625 = 56.25%