Calculate gross profit margin percentage, markup rate, revenue, and cost of goods sold.
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Profit margin is profit divided by revenue: Margin = ((Revenue - Cost) / Revenue) × 100. Markup is profit divided by cost: Markup = ((Revenue - Cost) / Cost) × 100. A product bought for $50 and sold for $100 has a 50% profit margin and a 100% markup.
Use the formula: Selling Price = Cost / (1 - (Margin% / 100)). For a $60 cost and 40% desired margin: Price = 60 / (1 - 0.40) = $100.
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