Cost of an item given Selling Price of $650 and a 30% Markup on Cost

Given: Selling Price = $650,  Markup = 30%
Markup as a Decimal: 30% = 0.3
Formula:
Cost =  

Selling Price/ 1 + Markup as a Decimal

Cost =  

$650/ 1 + 0.3

Cost =  

$650/ 1.3

Cost = $500
Notes:
Markup Amount = Selling Price – Cost = $650 – $500 = $150
Profit = Markup Amount = $150
Profit Margin =  

Profit/ Selling Price

=  

$150/ $650

= 0.2308 = 23.08%