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Chapter 17
Business Math
| Question | Answer |
|---|---|
| A pharmacy purchases a bottle of medication for $45.00 and sells it for $72.00. Calculate the markup amount and the markup percentage. | Markup amount = Selling price – Purchase cost = $72 – $45 = $27 Markup % = (Markup ÷ Purchase cost) × 100 = ($27 ÷ $45) × 100 = 60% |
| The pharmacy buys an item for $120 and sells it for $180. What is the gross profit on this item? | Gross profit = Sales price – Purchase cost = $180 – $120 = $60 |
| Monthly sales = $45,000 Cost of inventory sold = $28,000 Overhead expenses = $9,500 Calculate the net income/profit. | Gross profit = $45,000 – $28,000 = $17,000 Net income = Gross profit – Overhead = $17,000 – $9,500 = $7,500 |
| A pharmacy has annual sales of $620,000, cost of goods sold $410,000, and overhead $135,000. What is the net profit? | Gross profit = $620,000 – $410,000 = $210,000 Net profit = $210,000 – $135,000 = $75,000 |
| A customer receives a 15% discount on a $60 OTC item. What is the discount amount and the final price the customer pays? | Discount amount = $60 × 0.15 = $9 Discount price = $60 – $9 = $51 |
| An item has a selling price of $85. The pharmacy offers a 20% markdown. Calculate the new selling price. | Discount amount = $85 × 0.20 = $17 New price = $85 – $17 = $68 |
| A wholesaler offers the pharmacy a 12% discount if the invoice is paid within 10 days. The invoice total is $2,500. How much will the pharmacy save? | Discount = $2,500 × 0.12 = $300 |
| A prescription has a usual selling price of $95. The patient has a 10% senior discount. What does the patient pay? | Discount = $95 × 0.10 = $9.50 Patient pays = $95 – $9.50 = $85.50 |
| A prescription has an AWP of $68. Insurance reimburses AWP + 8% + $4.50 dispensing fee. What is the total reimbursement? | AWP + 8% = $68 + ($68 × 0.08) = $68 + $5.44 = $73.44 Total reimbursement = $73.44 + $4.50 = $77.94 |
| Under a capitation contract, the pharmacy receives $18 per patient per month. In one month, medication costs for that patient total $32. Did the pharmacy make a profit or loss? How much? | Profit/Loss = Capitation fee – Medication cost = $18 – $32 = –$14 (a loss of $14) |
| Inventory at beginning of year = $85,000 Inventory at end of year = $78,000 Cost of goods sold during the year = $312,000 Calculate the inventory turnover rate. | Average inventory = ($85,000 + $78,000) ÷ 2 = $81,500 Turnover rate = Cost of goods sold ÷ Average inventory = $312,000 ÷ $81,500 ≈ 3.83 times per year |
Created by:
tomknoah
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