15 Questions

Pharmacy Business Math

Questions and Answers

- 1.What does the term turnover rate mean?
- A.
Number of times a certain medication is being reordered and stocked in 2 years

- B.
Number of times a certain medication is being returned to manufacturer in one year

- C.
Number of times inventory has been replaced in one year

- 2.What does the term formulary mean?
- A.
A list of preferred drugs to be stocked by the pharmacy, also a list of drugs covered by an insurance company

- B.
A list of preferred drugs to be stocked by the pharmacy, also a list of drugs covered by an manufacturer company

- C.
A list of only brand name drugs to be stocked by the pharmacy, also a list of drugs covered by an insurance company

- 3.What does the term gross profit mean?
- A.
Profit that has been made by selling a product a little more than what the company actually paid

- B.
Total annual profit that was made by selling products

- C.
Profit that the company lost during selling the products

- 4.What does the term net profit mean?
- A.
Product selling price that is substracted by all dispensing costs

- B.
Product selling price that is multiplied by all dispensing cost

- C.
Product selling price that is divided by all dispensing cost

- 5.What does the term average wholesale price (AWP) mean?
- A.
Average price charged by pharmacies for a product, and most offer a discount

- B.
Average price charged by manufacturers for a product, and most offer a discount

- C.
Average price charged by wholesalers for a product, and most offer a discount

- 6.Drug A 40mg, quantity #100 costs the pharmacy $14.50. The prescription price is $42.00. What is the gross profit?
- A.
$2.73

- B.
$27.05

- C.
$27.50

- 7.Drug A 40mg, quantity #100 costs the pharmacy $14.50. Dispencing cost for this prescription total is $12.40. The prescription price is $42.00. What is the net profit?
- A.
$15.00

- B.
$15.10

- C.
$15.01

- 8.Prescription cost is $30.00. The patient has a 10% prescription discount coupon. How much will she pay after discount has been deducted?
- A.
$27

- B.
$20

- C.
$25

- 9.A pharmacy maintains an average inventory of $32,000. The annual purchases total $200,000. What is the turnover rate?
- A.
6.20 turns

- B.
6 turns

- C.
6.25 turns

- 10.Pharmacy Goods has a total of $423,400 sales. Beginning inventory total cost was $105,850 and ending total cost was $127,020. What is the turnover rate?
- A.
3.8 turns

- B.
4 turns

- C.
3.9 turns

- 11.What price do we charge a patient if the AWP for 300 tablets is $14.55 and we want to give the patient 30 tablets plus a 6% markup and a $3.00 dispensing fee?
- A.
$5.55

- B.
$4.55

- C.
$4.00

- 12.Rx Order: Triamcinolone 2% 60 grams, AWP: $30.00 for 8 ounces of Triamcinolone 2%, Markup: 8%, Dispensing fee: $5.00 How much will we charge the patient?
- A.
$13.1

- B.
$12.00

- C.
$12.70

- 13.Drug B 100mg, quantity #30 costs the pharmacy $15.50. The prescription price is $45.00. What is the gross profit?
- A.
$30.00

- B.
$29.50

- C.
$29.05

- 14.What does the term markup mean?
- A.
Amount added to the cost of goods to cover insurance

- B.
Amount added to the cost of goods to cover overhead and profit

- C.
Amount substracted to the cost of goods to cover overhead and profit

- 15.What price do we charge a patient if the AWP for 1000 tablets is $45.00 and we want to give the patient 90 tablets plus a 8% markup with a dispensing fee of $2.00?
- A.
$6.13

- B.
$6.00

- C.
$6.37