Cost of an item given Selling Price of $15 and a 50% Markup on Cost

Given: Selling Price = $15,  Markup = 50%
Markup as a Decimal: 50% = 0.5
Formula:
Cost =  

Selling Price/ 1 + Markup as a Decimal

Cost =  

$15/ 1 + 0.5

Cost =  

$15/ 1.5

Cost = $10
Notes:
Markup Amount = Selling Price – Cost = $15 – $10 = $5
Profit = Markup Amount = $5
Profit Margin =  

Profit/ Selling Price

=  

$5/ $15

= 0.3333 = 33.33%