Cost of an item given Selling Price of $59.64 and a 6.5% Markup on Cost

Given: Selling Price = $59.64,  Markup = 6.5%
Markup as a Decimal: 6.5% = 0.065
Formula:
Cost =  

Selling Price/ 1 + Markup as a Decimal

Cost =  

$59.64/ 1 + 0.065

Cost =  

$59.64/ 1.065

Cost = $56
Notes:
Markup Amount = Selling Price – Cost = $59.64 – $56 = $3.64
Profit = Markup Amount = $3.64
Profit Margin =  

Profit/ Selling Price

=  

$3.64/ $59.64

= 0.061 = 6.1%