Given: Cost = $70, Markup = 15%
Markup as a Decimal: 15% = 0.15
Formula:
Selling Price = Cost * (1 + Markup as a Decimal)
Selling Price = $70 * (1 + 0.15)
Selling Price = $70 * 1.15
Selling Price = $80.50
Notes:
Markup Amount = Selling Price – Cost = $80.50 – $70 = $10.50
Profit = Markup Amount = $10.50
Profit Margin =
Markup as a Decimal: 15% = 0.15
Formula:
Selling Price = Cost * (1 + Markup as a Decimal)
Selling Price = $70 * (1 + 0.15)
Selling Price = $70 * 1.15
Selling Price = $80.50
Notes:
Markup Amount = Selling Price – Cost = $80.50 – $70 = $10.50
Profit = Markup Amount = $10.50
Profit Margin =
Profit/
Selling Price
=
$10.50/
$80.50
= 0.1304 = 13.04%