Verified answer

This is not as simple as it might seem at first glance.

The formula is 300/(1-.55)

Sales Price $666.67

Cost 45.00% $300.00

Margin 55.00% $366.67

I have worked as cost accountant and most people misunderstand how margins are calculated.

If it costs you 300 and you want to MAKE 55% on it, you multiply the cost to you at 1+margin rate. In this case, it would be 300 * 1.55 = 465 or a mark-up of 165.

If you are selling it for 300 with a 55% margin, than you would divide the price you are selling it at by 1+margin rate so 300/1.55 = 193.55

or a mark up of 106.45