If the store purchases an item at a wholesale cost of $3.50 per item, and it is sold at a retail value of $5.00 per item. What is the gross profit percentage of the item? (formula: gross profit percentage = [(retail - cost) divided by retail] X 100 )
% Profit = ((R - C) / R) * 100%,
R = Retail.
C = Cost.
Linn, the Eq from your textbook might
be wrong. Please check.
% Profit=((R - C) / C)* 100% = 42.9%.
To find the gross profit percentage of the item, you can use the formula:
Gross Profit Percentage = [(Retail - Cost) / Retail] x 100
In this case, the wholesale cost of the item is $3.50 per item, and it is sold at a retail value of $5.00 per item.
Now, you can substitute the values into the formula:
Gross Profit Percentage = [($5.00 - $3.50) / $5.00] x 100
First, calculate the difference between the retail price and the cost:
Gross Profit Percentage = [$1.50 / $5.00] x 100
Next, divide the difference by the retail price:
Gross Profit Percentage = 0.30 x 100
Finally, multiply the result by 100 to get the gross profit percentage:
Gross Profit Percentage = 30%
Therefore, the gross profit percentage of the item is 30%.