Given: Cost = $26, Markup = 82.2%
Markup as a Decimal: 82.2% = 0.822
Formula:
Selling Price = Cost * (1 + Markup as a Decimal)
Selling Price = $26 * (1 + 0.822)
Selling Price = $26 * 1.822
Selling Price = $47.37
Notes:
Markup Amount = Selling Price – Cost = $47.37 – $26 = $21.37
Profit = Markup Amount = $21.37
Profit Margin =
Markup as a Decimal: 82.2% = 0.822
Formula:
Selling Price = Cost * (1 + Markup as a Decimal)
Selling Price = $26 * (1 + 0.822)
Selling Price = $26 * 1.822
Selling Price = $47.37
Notes:
Markup Amount = Selling Price – Cost = $47.37 – $26 = $21.37
Profit = Markup Amount = $21.37
Profit Margin =
Profit/
Selling Price
=
$21.37/
$47.37
= 0.4511 = 45.11%