Given: Cost = $1,000, Markup = 30%
Markup as a Decimal: 30% = 0.3
Formula:
Selling Price = Cost * (1 + Markup as a Decimal)
Selling Price = $1,000 * (1 + 0.3)
Selling Price = $1,000 * 1.3
Selling Price = $1,300
Notes:
Markup Amount = Selling Price – Cost = $1,300 – $1,000 = $300
Profit = Markup Amount = $300
Profit Margin =
Markup as a Decimal: 30% = 0.3
Formula:
Selling Price = Cost * (1 + Markup as a Decimal)
Selling Price = $1,000 * (1 + 0.3)
Selling Price = $1,000 * 1.3
Selling Price = $1,300
Notes:
Markup Amount = Selling Price – Cost = $1,300 – $1,000 = $300
Profit = Markup Amount = $300
Profit Margin =
Profit/
Selling Price
=
$300/
$1,300
= 0.2308 = 23.08%