Cost of an item given Selling Price of $8 and a 15% Markup on Cost

Given: Selling Price = $8,  Markup = 15%
Markup as a Decimal: 15% = 0.15
Formula:
Cost =  

Selling Price/ 1 + Markup as a Decimal

Cost =  

$8/ 1 + 0.15

Cost =  

$8/ 1.15

Cost = $6.96
Notes:
Markup Amount = Selling Price – Cost = $8 – $6.96 = $1.04
Profit = Markup Amount = $1.04
Profit Margin =  

Profit/ Selling Price

=  

$1.04/ $8

= 0.13 = 13%