What is the formula for determining net profit in a pharmacy?

The formula for determining net profit in a pharmacy is correctly identified as selling price minus acquisition cost and minus the dispensing fee. This calculation accurately reflects the total costs associated with selling a prescription or medication.

To break it down, the selling price is the amount the pharmacy charges the customer. The acquisition cost is the amount the pharmacy pays to obtain the medication. By subtracting both the acquisition cost and the dispensing fee from the selling price, you arrive at the net profit, which represents the actual earnings that remain after accounting for all expenses directly related to the sale of the product.

The dispensing fee covers the professional services and overhead costs related to filling the prescription, making it an essential part of calculating true profitability. Understanding this formula is key in pharmacy operations to ensure that the pharmacy remains financially viable while providing essential services to its customers.