The difference between the retail or wholesale price and the cost of an item is called?

The difference between the retail or wholesale price and the cost of an item is called?

• A. Marketing
• B. Marketing Mix
• C. Markup
• D. Meal Plan

Answer: (C)

The main idea here is how much you add to the item’s cost to set the selling price. That added amount is called markup. Markup equals the selling price minus the cost, and it shows how much profit or overhead is built into the price. For example, if an item costs 50 and you price it at 70, the markup is 20, which is 40% of the cost. This is different from margin, which expresses profit as a percentage of the selling price. The other terms relate to promotion or planning (marketing, marketing mix, meal plan) rather than the price calculation itself.

The main idea here is how much you add to the item’s cost to set the selling price. That added amount is called markup. Markup equals the selling price minus the cost, and it shows how much profit or overhead is built into the price. For example, if an item costs 50 and you price it at 70, the markup is 20, which is 40% of the cost. This is different from margin, which expresses profit as a percentage of the selling price. The other terms relate to promotion or planning (marketing, marketing mix, meal plan) rather than the price calculation itself.