Selling Price after a 50% Profit Margin is applied to an item that Cost $10

Given: Cost = $10,  Profit Margin = 50%
Profit Margin as a Decimal: 50% = 0.5
Formula:
Selling Price =  

Cost/ 1 – Profit Margin as a Decimal

Selling Price =  

$10/ 1 – 0.5

Selling Price =  

$10/ 0.5

Selling Price = $20
Notes:
Profit = Selling Price – Cost = $20 – $10 = $10
Markup Amount = Profit = $10
Markup Percentage =  

Markup Amount/ Cost

=  

$10/ $10

= 1 = 100%