Profit Margin on an item that Cost $10 with a Selling Price of $12.50

Given: Cost = $10,  Selling Price = $12.50
Formula:
Profit Margin =  
Selling Price – Cost/ Selling Price

Profit Margin =  
$12.50 – $10/ $12.50

Profit Margin =  
$2.50/ $12.50

Profit Margin = 0.2 = 20%
Notes:
Profit = Selling Price – Cost = $12.50 – $10 = $2.50
Markup Amount = Profit = $2.50
Markup Percentage =  
Markup Amount/ Cost
=  
$2.50/ $10
= 0.25 = 25%

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

Find Profit Margin given Cost and Selling Price

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