Markup (business)
Difference between the cost and the selling price of a good or service / From Wikipedia, the free encyclopedia
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Markup (or price spread) is the difference between the selling price of a good or service and its cost. It is often expressed as a percentage over the cost. A markup is added into the total cost incurred by the producer of a good or service in order to cover the costs of doing business and create a profit. The total cost reflects the total amount of both fixed and variable expenses to produce and distribute a product.[1] Markup can be expressed as the fixed amount or as a percentage of the total cost or selling price.[2] Retail markup is commonly calculated as the difference between wholesale price and retail price, as a percentage of wholesale. Other methods are also used.