Massachusetts Pharmacy Technician License Practice Test

If a store retails a bottle of ibuprofen for $1.99 with a wholesale cost of $1.00, what is the market percent?

1. 50%

2. 75%

3. 99%

4. 100%

The correct answer is: 99%

To determine the market percent in this scenario, you need to understand what "market percent" refers to in a retail context. Market percent usually describes the markup on an item in relation to its wholesale cost. To calculate the market percent, you can use the formula: \[ \text{Market Percent} = \left( \frac{\text{Retail Price} - \text{Wholesale Cost}}{\text{Wholesale Cost}} \right) \times 100 \] In this case: - Retail Price = $1.99 - Wholesale Cost = $1.00 First, find the difference between the retail price and the wholesale cost: \[ 1.99 - 1.00 = 0.99 \] Then, divide that difference by the wholesale cost: \[ \frac{0.99}{1.00} = 0.99 \] Finally, convert this to a percentage by multiplying by 100: \[ 0.99 \times 100 = 99\% \] Thus, the market percent for the bottle of ibuprofen is 99%. This indicates the degree to which the retail price exceeds the wholesale cost, highlighting how retailers set prices to cover costs and profit from sales.