Cost of an item given Selling Price of $600 and a 35% Markup on Cost

Given: Selling Price = $600,  Markup = 35%
Markup as a Decimal: 35% = 0.35
Formula:
Cost =  

Selling Price/ 1 + Markup as a Decimal

Cost =  

$600/ 1 + 0.35

Cost =  

$600/ 1.35

Cost = $444.44
Notes:
Markup Amount = Selling Price – Cost = $600 – $444.44 = $155.56
Profit = Markup Amount = $155.56
Profit Margin =  

Profit/ Selling Price

=  

$155.56/ $600

= 0.2593 = 25.93%