Selling Price after a 20% Markup is applied to an item that Cost $120

Given: Cost = $120,  Markup = 20%
Markup as a Decimal: 20% = 0.2
Formula:
Selling Price = Cost * (1 + Markup as a Decimal)
Selling Price = $120 * (1 + 0.2)
Selling Price = $120 * 1.2
Selling Price = $144
Notes:
Markup Amount = Selling Price – Cost = $144 – $120 = $24
Profit = Markup Amount = $24
Profit Margin =   =   = 0.1667 = 16.67%