Selling Price after a 25% Profit Margin is applied to an item that Cost $37.50

Given: Cost = $37.50,  Profit Margin = 25%
Profit Margin as a Decimal: 25% = 0.25
Formula:
Selling Price =  

Cost/ 1 – Profit Margin as a Decimal

Selling Price =  

$37.50/ 1 – 0.25

Selling Price =  

$37.50/ 0.75

Selling Price = $50
Notes:
Profit = Selling Price – Cost = $50 – $37.50 = $12.50
Markup Amount = Profit = $12.50
Markup Percentage =  

Markup Amount/ Cost

=  

$12.50/ $37.50

= 0.3333 = 33.33%