what is meant by the marked price of an item  

Expert Answers
jeew-m eNotes educator| Certified Educator

Imagine a situation you go to a shop and asking for a bar of chocolate. The shopkeeper will sell you this to some price lets say $2. Do you believe that the shopkeeper buys this bar of chocolate from an agent for the same price. If it is so there is no point of him running a shop. The reality is that shopkeeper takes the bar of chocolate to a price that is less than $2. Unless he want have any profit.

So move on to our question;

Marked price is the selling price to customer. It includes the actual value of chocolate and the profit margins of the people who sells it.

There is an other term cost price. It is the price that the shopkeeper buys the bar of chocolate from the agents.

So marked price = cost price+profit margin