Cost of an item given Selling Price of $57.60 and a 28% Markup on Cost

Given: Selling Price = $57.60,  Markup = 28%
Markup as a Decimal: 28% = 0.28
Formula:
Cost =  

Selling Price/ 1 + Markup as a Decimal

Cost =  

$57.60/ 1 + 0.28

Cost =  

$57.60/ 1.28

Cost = $45
Notes:
Markup Amount = Selling Price – Cost = $57.60 – $45 = $12.60
Profit = Markup Amount = $12.60
Profit Margin =  

Profit/ Selling Price

=  

$12.60/ $57.60

= 0.2188 = 21.88%