Selling Price after a 5% Markup is applied to an item that Cost $25,000

Given: Cost = $25,000,  Markup = 5%
Markup as a Decimal: 5% = 0.05
Formula:
Selling Price = Cost * (1 + Markup as a Decimal)
Selling Price = $25,000 * (1 + 0.05)
Selling Price = $25,000 * 1.05
Selling Price = $26,250
Notes:
Markup Amount = Selling Price – Cost = $26,250 – $25,000 = $1,250
Profit = Markup Amount = $1,250
Profit Margin =   =   = 0.0476 = 4.76%