Given: Cost = $9,126, Markup = 25%
Markup as a Decimal: 25% = 0.25
Formula:
Selling Price = Cost * (1 + Markup as a Decimal)
Selling Price = $9,126 * (1 + 0.25)
Selling Price = $9,126 * 1.25
Selling Price = $11,407.50
Notes:
Markup Amount = Selling Price – Cost = $11,407.50 – $9,126 = $2,281.50
Profit = Markup Amount = $2,281.50
Profit Margin =
Markup as a Decimal: 25% = 0.25
Formula:
Selling Price = Cost * (1 + Markup as a Decimal)
Selling Price = $9,126 * (1 + 0.25)
Selling Price = $9,126 * 1.25
Selling Price = $11,407.50
Notes:
Markup Amount = Selling Price – Cost = $11,407.50 – $9,126 = $2,281.50
Profit = Markup Amount = $2,281.50
Profit Margin =
Profit/
Selling Price
=
$2,281.50/
$11,407.50
= 0.2 = 20%