For a retail price of $100 and cost of $60, what is the markup in dollars?

To determine the markup in dollars, you need to subtract the cost of the item from its retail price. The retail price represents how much the item is sold for, and the cost represents how much it was purchased for.

In this case, the retail price is $100, and the cost is $60. By calculating the difference:

Markup = Retail Price - Cost

Markup = $100 - $60

Markup = $40

Thus, the markup in dollars is $40. This indicates how much profit is made over the cost of the item before other expenses are considered. Understanding markup is crucial for evaluating pricing strategies and ensuring profitability in retail operations.