True or False: A retailer who discounts an item’s retail price also reduces his or her markup on the item.

False. A retailer who discounts an item's retail price does not necessarily reduce his or her markup on the item. Discounting the retail price means offering a temporary reduction in price to attract customers or clear excess inventory, but it does not necessarily affect the markup percentage. The retailer may still maintain the same or similar profit margin by reducing the retail price while keeping the markup percentage intact.