Which term denotes the percentage derived by dividing the wholesale cost of merchandise by its retail price?

• A. Consumer Value Index
• B. Copper
• C. Crown
• D. Crepe

Answer: (A)

Understanding pricing terms in merchandising includes recognizing how cost relates to the selling price. When you divide wholesale cost by the retail price, you’re looking at the portion of the retail price that covers the cost of the merchandise. The term used for this percentage is the Consumer Value Index. It expresses how much of the price goes toward cost versus profit and helps gauge how much value the consumer is getting relative to the cost. For example, if the wholesale cost is 40 and the retail price is 100, the CVI would be 40%, meaning 40% of the selling price is the cost. The other options refer to materials or unrelated concepts in restorative art and do not describe this pricing ratio.