How is retail markup commonly expressed?

Retail markup is commonly expressed as a percentage of the cost price. This means that the markup is calculated by taking the difference between the cost of a product and its selling price and then dividing that difference by the cost price to determine the percentage. This method allows retailers to consistently apply markup across different products based on their specific costs, making it easier to maintain pricing strategies.

Expressing markup as a percentage of the cost price helps retailers communicate how much more they are charging relative to what they paid for the product, thus providing a clear understanding of profit margins. This approach is widely used in the retail industry because it accounts for varying costs of goods sold and facilitates price adjustments according to changes in costs.

The other options might indicate different methods or implications of pricing strategy but do not accurately represent how retail markup is traditionally calculated and communicated in retail environments.