Given: Cost = $80, Selling Price = $140
Formula:
Profit Margin =
Profit Margin =
Profit Margin =
Profit Margin = 0.4286 = 42.86%
Notes:
Profit = Selling Price – Cost = $140 – $80 = $60
Markup Amount = Profit = $60
Markup Percentage =
Formula:
Profit Margin =
Selling Price – Cost/
Selling Price
Profit Margin =
$140 – $80/
$140
Profit Margin =
$60/
$140
Profit Margin = 0.4286 = 42.86%
Notes:
Profit = Selling Price – Cost = $140 – $80 = $60
Markup Amount = Profit = $60
Markup Percentage =
Markup Amount/
Cost
=
$60/
$80
= 0.75 = 75%