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 )

Answer 1

%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%.