Given: Cost = $37.50, Selling Price = $50
Formula:
Profit Margin =
Profit Margin =
Profit Margin =
Profit Margin = 0.25 = 25%
Notes:
Profit = Selling Price – Cost = $50 – $37.50 = $12.50
Markup Amount = Profit = $12.50
Markup Percentage =
Formula:
Profit Margin =
Selling Price – Cost/
Selling Price
Profit Margin =
$50 – $37.50/
$50
Profit Margin =
$12.50/
$50
Profit Margin = 0.25 = 25%
Notes:
Profit = Selling Price – Cost = $50 – $37.50 = $12.50
Markup Amount = Profit = $12.50
Markup Percentage =
Markup Amount/
Cost
=
$12.50/
$37.50
= 0.3333 = 33.33%