Selling Price after a 25% Profit Margin is applied to an item that Cost $56,000

Given: Cost = $56,000,  Profit Margin = 25%
Profit Margin as a Decimal: 25% = 0.25
Formula:
Selling Price =  

Cost/ 1 – Profit Margin as a Decimal

Selling Price =  

$56,000/ 1 – 0.25

Selling Price =  

$56,000/ 0.75

Selling Price = $74,666.67
Notes:
Profit = Selling Price – Cost = $74,666.67 – $56,000 = $18,666.67
Markup Amount = Profit = $18,666.67
Markup Percentage =  

Markup Amount/ Cost

=  

$18,666.67/ $56,000

= 0.3333 = 33.33%