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The wholesale cost of (90) 10 mg tablets of a particular drug is $126.39. Assumi

ID: 2700252 • Letter: T

Question

The wholesale cost of (90) 10 mg tablets of a particular drug is $126.39. Assuming our dispensing costs are $65.35 and our profit goal is 20%, what would be our retail price? (credit: http://www.gpht.org/practice-exam-13.html)
A. $142.27
B. $191.74
C. $230.09
D. $204.81

Please help me understand how to calculate this problem and thank you in advance! I did it based off of "(retail-wholesale)/wholesale = percent markup". That formula makes sense to me and worked on other problems except this. This is how I calculated it:



Explanation / Answer

wholesale cost= 126.39

dispensing cost = 65.35

total cost      = 126.35+65.35=191.74

Add profit margin = 191.74*20/100=38.348

reail price = 191.74+38.348=230.09..


Therefore answer is C i.e. 230.09