Selling Price after a 85% Profit Margin is applied to an item that Cost $2.22

Given: Cost = $2.22,  Profit Margin = 85%
Profit Margin as a Decimal: 85% = 0.85
Formula:
Selling Price =  

Cost/ 1 – Profit Margin as a Decimal

Selling Price =  

$2.22/ 1 – 0.85

Selling Price =  

$2.22/ 0.15

Selling Price = $14.80
Notes:
Profit = Selling Price – Cost = $14.80 – $2.22 = $12.58
Markup Amount = Profit = $12.58
Markup Percentage =  

Markup Amount/ Cost

=  

$12.58/ $2.22

= 5.6667 = 566.67%