Profit Margin on an item that Cost $100 with a Selling Price of $125

Given: Cost = $100,  Selling Price = $125
Formula:
Profit Margin =  
Selling Price – Cost/ Selling Price

Profit Margin =  
$125 – $100/ $125

Profit Margin =  
$25/ $125

Profit Margin = 0.2 = 20%
Notes:
Profit = Selling Price – Cost = $125 – $100 = $25
Markup Amount = Profit = $25
Markup Percentage =  
Markup Amount/ Cost
=  
$25/ $100
= 0.25 = 25%

The solution above and other related solutions  were provided by the Profit Margin given Cost and Selling Price Application.