Selling Price after a 60% Profit Margin is applied to an item that Cost $240

Given: Cost = $240,  Profit Margin = 60%
Profit Margin as a Decimal: 60% = 0.6
Formula:
Selling Price =  

Cost/ 1 – Profit Margin as a Decimal

Selling Price =  

$240/ 1 – 0.6

Selling Price =  

$240/ 0.4

Selling Price = $600
Notes:
Profit = Selling Price – Cost = $600 – $240 = $360
Markup Amount = Profit = $360
Markup Percentage =  

Markup Amount/ Cost

=  

$360/ $240

= 1.5 = 150%