what is the gross profit percent on a item bought for 3.50 at wholesale price and then sold at 5.00 for retail price
100 [(5.00 - 3.50)/5] = ?
To calculate the gross profit percent, we need to determine the gross profit earned and divide it by the wholesale cost, and then multiply the result by 100 to convert it to a percentage.
Gross profit is the difference between the selling price and the wholesale cost. In this case, the selling price is $5.00, and the wholesale cost is $3.50. The gross profit earned is $5.00 - $3.50 = $1.50.
Now, we can calculate the gross profit percent using the formula:
Gross Profit Percent = (Gross Profit / Wholesale Cost) * 100
Substituting the values:
Gross Profit Percent = ($1.50 / $3.50) * 100
Simplifying:
Gross Profit Percent = 0.4286 * 100
Gross Profit Percent ≈ 42.86%
Therefore, the gross profit percent on the item bought for $3.50 wholesale and sold for $5.00 retail is approximately 42.86%.