Selling Price after a 21.88% Profit Margin is applied to an item that Cost $45

Given: Cost = $45,  Profit Margin = 21.88%
Profit Margin as a Decimal: 21.88% = 0.2188
Formula:
Selling Price =  

Cost/ 1 – Profit Margin as a Decimal

Selling Price =  

$45/ 1 – 0.2188

Selling Price =  

$45/ 0.7812

Selling Price = $57.60
Notes:
Profit = Selling Price – Cost = $57.60 – $45 = $12.60
Markup Amount = Profit = $12.60
Markup Percentage =  

Markup Amount/ Cost

=  

$12.60/ $45

= 0.28 = 28%