Cost of an item given Selling Price of $2,100 and a 60% Markup on Cost

Given: Selling Price = $2,100,  Markup = 60%
Markup as a Decimal: 60% = 0.6
Formula:
Cost =  

Selling Price/ 1 + Markup as a Decimal

Cost =  

$2,100/ 1 + 0.6

Cost =  

$2,100/ 1.6

Cost = $1,312.50
Notes:
Markup Amount = Selling Price – Cost = $2,100 – $1,312.50 = $787.50
Profit = Markup Amount = $787.50
Profit Margin =  

Profit/ Selling Price

=  

$787.50/ $2,100

= 0.375 = 37.5%