Question

If you pay $25.72 for a drug and the selling price is $42.50, what is the percent gross profit?

A. 40%
B. 55%
C. 65%
D. 75%

Answer 1

To calculate the percent gross profit, subtract the cost price from the selling price to find the gross profit, then divide by the cost price, and multiply by 100. The result shows that the percent gross profit on the drug is approximately 65.25%.

Step-by-step explanation:

To calculate the percent gross profit, you need to know the cost price and the selling price of the drug. You have been given that the drug costs $25.72 and sells for $42.50.

First, find out the gross profit in dollars by subtracting the cost price from the selling price:

Gross Profit = Selling Price - Cost Price
Gross Profit = $42.50 - $25.72
Gross Profit = $16.78

Next, to find the percent gross profit, divide the gross profit by the cost price and then multiply by 100 to convert it into a percentage:

Percent Gross Profit = (Gross Profit / Cost Price) × 100
Percent Gross Profit = ($16.78 / $25.72) × 100
Percent Gross Profit = 0.6525 × 100
Percent Gross Profit = 65.25%

So, the percent gross profit on the drug is approximately 65.25%, which if rounded to closest option would be 65% (Option C).