Given: Cost = $7, Selling Price = $10
Formula:
Profit Margin =
Profit Margin =
Profit Margin =
Profit Margin = 0.3 = 30%
Notes:
Profit = Selling Price – Cost = $10 – $7 = $3
Markup Amount = Profit = $3
Markup Percentage =
Formula:
Profit Margin =
Selling Price – Cost/
Selling Price
Profit Margin =
$10 – $7/
$10
Profit Margin =
$3/
$10
Profit Margin = 0.3 = 30%
Notes:
Profit = Selling Price – Cost = $10 – $7 = $3
Markup Amount = Profit = $3
Markup Percentage =
Markup Amount/
Cost
=
$3/
$7
= 0.4286 = 42.86%