Selling Price after a 25% Profit Margin is applied to an item that Cost $600

Given: Cost = $600,  Profit Margin = 25%
Profit Margin as a Decimal: 25% = 0.25
Formula:
Selling Price =  

Cost/ 1 – Profit Margin as a Decimal

Selling Price =  

$600/ 1 – 0.25

Selling Price =  

$600/ 0.75

Selling Price = $800
Notes:
Profit = Selling Price – Cost = $800 – $600 = $200
Markup Amount = Profit = $200
Markup Percentage =  

Markup Amount/ Cost

=  

$200/ $600

= 0.3333 = 33.33%