Cost of an item given Selling Price of $24.20 and a 21% Markup on Cost

Given: Selling Price = $24.20,  Markup = 21%
Markup as a Decimal: 21% = 0.21
Formula:
Cost =  

Selling Price/ 1 + Markup as a Decimal

Cost =  

$24.20/ 1 + 0.21

Cost =  

$24.20/ 1.21

Cost = $20
Notes:
Markup Amount = Selling Price – Cost = $24.20 – $20 = $4.20
Profit = Markup Amount = $4.20
Profit Margin =  

Profit/ Selling Price

=  

$4.20/ $24.20

= 0.1736 = 17.36%