Which pricing method adds a fixed dollar amount to the wholesale cost of merchandise?

The pricing method that adds a fixed dollar amount to the wholesale cost of merchandise is referred to as fixed dollar amount pricing. This approach allows retailers to maintain consistent profit margins regardless of fluctuations in the wholesale costs. By setting a specific dollar amount to be added to the wholesale cost, retailers can easily calculate the selling price of their products. This method enables transparency in pricing for both the retailer and the customer, as it clearly delineates how much the retailer is adding to the cost of goods sold.

In contrast, other pricing methods such as fixed cost pricing, markdown pricing, and dynamic pricing do not primarily focus on simply adding a fixed dollar amount to the wholesale cost. Fixed cost pricing typically involves determining a flat rate for total costs, including both fixed and variable expenses. Markdown pricing refers to the reduction of the original selling price to stimulate sales, often used for clearance or promotional sales. Dynamic pricing involves adjusting prices in response to market demand or competition, which differs from the straightforward addition of a fixed amount to the wholesale cost.