What is 2 step pricing?
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a) DC + Store Markup added
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b) DC Cost + Margin added
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c) Store margin + Cost added
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d) Markup is added twice.
Two-step pricing (or two-stage pricing) in retail refers to adding the Distribution Center (DC) price/cost and then adding the store markup on top of it. This creates the final retail price. The DC price represents the cost from the distribution center, and the store markup is the retailer's margin. Option B is close but uses 'DC Cost' which is less precise. Option C reverses the order. Option D is incorrect as markup is only added once.
This is a duplicate of the 2-step pricing question: "2-step pricing" means the retail price is derived by first setting the DC (Distribution Center) cost, then adding a store-level markup on top — two distinct stages rather than a single markup applied at one point. The other choices swap or misstate the components (Cost + Margin, Store margin + Cost) or describe stacking markup twice, none of which match the standard two-stage DC-cost-then-store-markup definition.