PTCB Pharmacy Business Math Practice Test

Since 10% is a percent you would add a decimal to the 10% when calculating in calculator. Ex) 10% ---- .10 (in calculator)

Formula: (Rx price - pharmacy drug cost)

The gross profit can be calculated by subtracting the cost from the prescription price. In this case, the cost of Drug B 100mg, quantity #30 is $15.50 and the prescription price is $45.00. Therefore, the gross profit is $45.00 - $15.50 = $29.50.

Formula: (Rx cost - pharmacy drug cost - dispensing cost)

Net profit refers to the amount of money earned by a company after deducting all expenses and costs associated with producing and selling a product. In this case, the correct answer states that net profit is calculated by subtracting all dispensing costs from the product selling price. This means that the expenses incurred in the process of selling the product are subtracted from the revenue generated from selling the product, resulting in the net profit.

Formula: (annual purchases / average inventory)

Markup refers to the amount added to the cost of goods in order to cover overhead expenses and generate profit. It is a common practice in business to include a markup on the cost of goods in order to ensure that all expenses are covered and to create a profit margin. By adding a markup, businesses can ensure that they are able to cover their operating costs and generate income.

Many formulary drugs are generics. Also common drugs are listed in the formulary list. These drugs must meet certain requirements to be included in the list such as cost and effectiveness.

The price charged to the patient can be calculated by first finding the cost of 90 tablets with an 8% markup. The cost of 1000 tablets at $45.00 gives a cost per tablet of $0.045. Adding an 8% markup to this gives a cost per tablet of $0.0486. Multiplying this by 90 tablets gives a total cost of $4.374. Adding the dispensing fee of $2.00 to this gives a final price of $6.374, which can be rounded to $6.37.

The term average wholesale price (AWP) refers to the average price charged by wholesalers for a product. This means that wholesalers, who buy products in bulk from manufacturers, sell them to pharmacies at an average price. It is common for wholesalers to offer a discount on this price, making it more affordable for pharmacies.

The price charged to the patient is $4.55. This is calculated by taking the AWP for 30 tablets, which is $14.55/300 * 30 = $1.455. Then, a 6% markup is added, which is $1.455 * 0.06 = $0.0873. Finally, the $3.00 dispensing fee is added, resulting in a total price of $1.455 + $0.0873 + $3.00 = $4.55.

If a certain medication or product has been sitting on the shelf for a long time then it is costing the pharmacy money which it's not a good thing. A good turnover rate is 4 or more.

Gross profit refers to the profit that a company earns by selling a product for a price that is slightly higher than the cost of producing that product. It is the difference between the revenue generated from sales and the cost of goods sold. It does not take into account other expenses such as operating expenses or taxes.

Formula: (Sales + beginning inventory - ending inventory) / beginning inventory

1 gram = 0.0352739619 ounces or 1 ounce = 30 grams