Cost of an item given Selling Price of $30 and a 50% Markup on Cost

Given: Selling Price = $30,  Markup = 50%
Markup as a Decimal: 50% = 0.5
Formula:
Cost =  

Selling Price/ 1 + Markup as a Decimal

Cost =  

$30/ 1 + 0.5

Cost =  

$30/ 1.5

Cost = $20
Notes:
Markup Amount = Selling Price – Cost = $30 – $20 = $10
Profit = Markup Amount = $10
Profit Margin =  

Profit/ Selling Price

=  

$10/ $30

= 0.3333 = 33.33%