Selling Price after a 87.5% Markup is applied to an item that Cost $40

Given: Cost = $40,  Markup = 87.5%
Markup as a Decimal: 87.5% = 0.875
Formula:
Selling Price = Cost * (1 + Markup as a Decimal)
Selling Price = $40 * (1 + 0.875)
Selling Price = $40 * 1.875
Selling Price = $75
Notes:
Markup Amount = Selling Price – Cost = $75 – $40 = $35
Profit = Markup Amount = $35
Profit Margin =   =   = 0.4667 = 46.67%