If an item sells for $50 and costs $20, what is the markup amount?

If an item sells for $50 and costs $20, what is the markup amount?

• A. $20
• B. $30
• C. $40
• D. $10

Answer: (B)

To determine the markup amount, you need to subtract the cost of the item from its selling price. In this case, the selling price is $50, and the cost is $20. The calculation looks like this: Selling Price - Cost = Markup Amount $50 - $20 = $30 This calculation reveals that the markup amount is $30. Understanding this concept is fundamental in fashion merchandising as it helps businesses set prices that cover costs and provide profit. The other options do not reflect the accurate difference between the selling price and cost.

To determine the markup amount, you need to subtract the cost of the item from its selling price. In this case, the selling price is $50, and the cost is $20.

The calculation looks like this:

Selling Price - Cost = Markup Amount

$50 - $20 = $30

This calculation reveals that the markup amount is $30. Understanding this concept is fundamental in fashion merchandising as it helps businesses set prices that cover costs and provide profit. The other options do not reflect the accurate difference between the selling price and cost.