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 )

%P = ((5.00-3.5) / 5.00)*100 = 30.

I used the given Eq, but I believe they
made an error.

The % profit should be:

%P = ((5.00-3.50) / 3.50)*100 = 42.9%.

To calculate the gross profit percentage, we can use the formula: gross profit percentage = [(retail - cost) / retail] * 100.

In this case, the wholesale cost of the item is $3.50, and it is sold at a retail value of $5.00.

We can substitute these values into the formula to find the gross profit percentage:

retail = $5.00
cost = $3.50

[(5.00 - 3.50) / 5.00] * 100

Now, let's calculate:

gross profit percentage = [(1.50 / 5.00) * 100]
= [0.30 * 100]
= 30

Therefore, the gross profit percentage of the item is 30%.