In the provided example, what is the markup percentage used for Drug Y?

To determine the markup percentage used for Drug Y, the calculation involves understanding the relationship between the cost of the drug and the selling price. The markup percentage is typically calculated using the formula:

[ \text{Markup Percentage} = \left( \frac{\text{Selling Price} - \text{Cost}}{\text{Cost}} \right) \times 100 ]

In this case, since the answer indicates that the markup percentage is 25%, it suggests that the selling price of Drug Y was established to be 25% higher than its cost.

For example, if the cost of Drug Y was $100, applying a 25% markup would result in a selling price calculated as follows:

[ \text{Selling Price} = \text{Cost} + \left( \frac{25}{100} \times \text{Cost} \right) = 100 + 25 = 125 ]

Thus, this signifies that selling Drug Y at this price ensures that the pharmacy not only covers the cost of the drug but also makes a profit margin of 25%.

This understanding of markup percentages is crucial in pharmacy billing and reimbursement, as it influences pricing strategies and impacts overall revenue.