Selling Price after a 60% Markup is applied to an item that Cost $5

Given: Cost = $5,  Markup = 60%
Markup as a Decimal: 60% = 0.6
Formula:
Selling Price = Cost * (1 + Markup as a Decimal)
Selling Price = $5 * (1 + 0.6)
Selling Price = $5 * 1.6
Selling Price = $8
Notes:
Markup Amount = Selling Price – Cost = $8 – $5 = $3
Profit = Markup Amount = $3
Profit Margin =   =   = 0.375 = 37.5%