What is the net profit if a drug sells for $29.99, has a wholesale cost of $19.74, and a dispensing cost of $3.20?

To determine the net profit, you first need to compute the total costs associated with selling the drug, which includes both the wholesale cost and the dispensing cost.

The wholesale cost is $19.74, and the dispensing cost is $3.20. Adding these two together gives you the total cost:

Total cost = Wholesale cost + Dispensing cost

Total cost = $19.74 + $3.20 = $22.94

Next, the selling price of the drug is $29.99. To find the net profit, subtract the total cost from the selling price:

Net profit = Selling price - Total cost

Net profit = $29.99 - $22.94 = $7.05

This calculation shows that the correct net profit from the sale of the drug is indeed $7.05. Understanding this simple profit margin calculation is important for pharmacy technicians as it helps in evaluating the financial performance of medications in a pharmacy setting.