Given: Cost = $125, Markup = 35%
Markup as a Decimal: 35% = 0.35
Formula:
Selling Price = Cost * (1 + Markup as a Decimal)
Selling Price = $125 * (1 + 0.35)
Selling Price = $125 * 1.35
Selling Price = $168.75
Notes:
Markup Amount = Selling Price – Cost = $168.75 – $125 = $43.75
Profit = Markup Amount = $43.75
Profit Margin =
Markup as a Decimal: 35% = 0.35
Formula:
Selling Price = Cost * (1 + Markup as a Decimal)
Selling Price = $125 * (1 + 0.35)
Selling Price = $125 * 1.35
Selling Price = $168.75
Notes:
Markup Amount = Selling Price – Cost = $168.75 – $125 = $43.75
Profit = Markup Amount = $43.75
Profit Margin =
Profit/
Selling Price
=
$43.75/
$168.75
= 0.2593 = 25.93%