Selling Price after a 40% Profit Margin is applied to an item that Cost $60

Given: Cost = $60,  Profit Margin = 40%
Profit Margin as a Decimal: 40% = 0.4
Formula:
Selling Price =  

Cost/ 1 – Profit Margin as a Decimal

Selling Price =  

$60/ 1 – 0.4

Selling Price =  

$60/ 0.6

Selling Price = $100
Notes:
Profit = Selling Price – Cost = $100 – $60 = $40
Markup Amount = Profit = $40
Markup Percentage =  

Markup Amount/ Cost

=  

$40/ $60

= 0.6667 = 66.67%