Cost of an item given Selling Price of $9 and a 80% Markup on Cost

Given: Selling Price = $9,  Markup = 80%
Markup as a Decimal: 80% = 0.8
Formula:
Cost =  

Selling Price/ 1 + Markup as a Decimal

Cost =  

$9/ 1 + 0.8

Cost =  

$9/ 1.8

Cost = $5
Notes:
Markup Amount = Selling Price – Cost = $9 – $5 = $4
Profit = Markup Amount = $4
Profit Margin =  

Profit/ Selling Price

=  

$4/ $9

= 0.4444 = 44.44%