How is gross profit calculated in a pharmacy?

Gross profit in a pharmacy is calculated as the selling price minus the purchase price of goods sold. This calculation allows the pharmacy to understand the profit it makes from directly selling its products before considering other expenses.

By focusing solely on the revenue generated from sales and the costs associated with acquiring those products, the gross profit provides a clear measure of how effectively the pharmacy is managing its inventory and sales.

The other options consider various expenses and costs that go beyond the scope of calculating gross profit. For instance, operating expenses and total expenses would include factors such as rent, salaries, and utilities, which are not relevant when specifically assessing gross profit derived from sales. Thus, the relationship between selling price and purchase price distinctly captures the profitability of the products sold, making it the correct method for calculating gross profit.