Cost of an item given Selling Price of $175 and a 150% Markup on Cost

Given: Selling Price = $175,  Markup = 150%
Markup as a Decimal: 150% = 1.5
Formula:
Cost =  

Selling Price/ 1 + Markup as a Decimal

Cost =  

$175/ 1 + 1.5

Cost =  

$175/ 2.5

Cost = $70
Notes:
Markup Amount = Selling Price – Cost = $175 – $70 = $105
Profit = Markup Amount = $105
Profit Margin =  

Profit/ Selling Price

=  

$105/ $175

= 0.6 = 60%