Cost of an item given Selling Price of $8 and a 19% Markup on Cost

Given: Selling Price = $8,  Markup = 19%
Markup as a Decimal: 19% = 0.19
Formula:
Cost =  

Selling Price/ 1 + Markup as a Decimal

Cost =  

$8/ 1 + 0.19

Cost =  

$8/ 1.19

Cost = $6.72
Notes:
Markup Amount = Selling Price – Cost = $8 – $6.72 = $1.28
Profit = Markup Amount = $1.28
Profit Margin =  

Profit/ Selling Price

=  

$1.28/ $8

= 0.16 = 16%