Given: Cost = $100, Selling Price = $125
Formula:
Profit Margin =
Profit Margin =
Profit Margin =
Profit Margin = 0.2 = 20%
Notes:
Profit = Selling Price – Cost = $125 – $100 = $25
Markup Amount = Profit = $25
Markup Percentage =
Formula:
Profit Margin =
Selling Price – Cost/
Selling Price
Profit Margin =
$125 – $100/
$125
Profit Margin =
$25/
$125
Profit Margin = 0.2 = 20%
Notes:
Profit = Selling Price – Cost = $125 – $100 = $25
Markup Amount = Profit = $25
Markup Percentage =
Markup Amount/
Cost
=
$25/
$100
= 0.25 = 25%