Question

drag the items to their definitions.

gross profit
net income
profit margin
markup
net profit

• the difference between the selling price and the purchase price
• the setting price minus the purchase price and expenses
• the percentage found when the net profit is divided by sales
• the difference found when the wholesale price is subtracted from the retail price
• the difference between gross profit and overhead

Explanation:

Match markup definition

Using the Pharmacy Financial Metrics knowledge point

• Definition: "The difference found when the wholesale price is subtracted from the retail price"
• Concept: Markup represents the amount added to the cost price of goods to cover overhead and profit.

Match gross profit definition

Using the Pharmacy Financial Metrics knowledge point

• Definition: "The difference between the selling price and the purchase price"
• Concept: Gross profit is the direct profit before subtracting operating expenses.

Match net income definition

Using the Pharmacy Financial Metrics knowledge point

• Definition: "The setting price minus the purchase price and expenses"
• Concept: Net income represents total revenue minus all costs, purchase prices, and business expenses.

Match profit margin definition

Using the Pharmacy Financial Metrics knowledge point

• Definition: "The percentage found when the net profit is divided by sales"
• Concept: Profit margin measures profitability as a ratio of profit to sales revenue.

Match net profit definition

Using the Pharmacy Financial Metrics knowledge point

• Definition: "The difference between gross profit and overhead"
• Concept: Net Profit is what remains after subtracting overhead/operating expenses from gross profit.

Answer:

Definition	Item
The setting price minus the purchase price and expenses	Net income
The percentage found when the net profit is divided by sales	Profit margin
The difference found when the wholesale price is subtracted from the retail price	Markup
The difference between gross profit and overhead	Net Profit