Selling Price after a 40% Markup is applied to an item that Cost $18

Given: Cost = $18,  Markup = 40%
Markup as a Decimal: 40% = 0.4
Formula:
Selling Price = Cost * (1 + Markup as a Decimal)
Selling Price = $18 * (1 + 0.4)
Selling Price = $18 * 1.4
Selling Price = $25.20
Notes:
Markup Amount = Selling Price – Cost = $25.20 – $18 = $7.20
Profit = Markup Amount = $7.20
Profit Margin =   =   = 0.2857 = 28.57%