Given: Cost = $12, Markup = 63%
Markup as a Decimal: 63% = 0.63
Formula:
Selling Price = Cost * (1 + Markup as a Decimal)
Selling Price = $12 * (1 + 0.63)
Selling Price = $12 * 1.63
Selling Price = $19.56
Notes:
Markup Amount = Selling Price – Cost = $19.56 – $12 = $7.56
Profit = Markup Amount = $7.56
Profit Margin =
Markup as a Decimal: 63% = 0.63
Formula:
Selling Price = Cost * (1 + Markup as a Decimal)
Selling Price = $12 * (1 + 0.63)
Selling Price = $12 * 1.63
Selling Price = $19.56
Notes:
Markup Amount = Selling Price – Cost = $19.56 – $12 = $7.56
Profit = Markup Amount = $7.56
Profit Margin =
Profit/
Selling Price
=
$7.56/
$19.56
= 0.3865 = 38.65%