We multiply by 100 because we express it as a percentage not as a fraction 25 is the same as 025 or 14 or 2080. The answer is your retail price. Accordingly as per the markup calculation formula Average Markup Percentage Selling Price Cost PriceCost Price100.
In laymans terms profit is also known as either markup or margin when were dealing with raw numbers not percentages.
For example if you purchase womens blouses at fifteen dollars each to resell and you want a 45 percent profit you would sell the blouses at a 45 percent markup or 1500 multiplied by 145 equals 2175. To calculate revenue R based on the cost C and the desired gross margin G where G is in decimal form. In other words you sold the chair for 60 more than what you paid for it. This guide outlines the markup formula and also provides a markup calculator to download.