What is the value of the markup when Drug Y has a retail cost of $9.00 with a 25% markup?

To calculate the value of the markup on Drug Y, you take the retail cost of the drug, which is $9.00, and apply the markup percentage to it. A markup of 25% means that you will add 25% of the retail cost to the original cost to find the markup value.

First, convert the percentage to a decimal for calculation purposes, which means 25% becomes 0.25. Next, multiply this decimal by the retail cost:

0.25 x $9.00 = $2.25.

Thus, the value of the markup for Drug Y is $2.25.

Knowing this calculation is crucial in the pharmacy billing context, as understanding how to apply markup percentages is fundamental for determining prices that include the cost of medications plus the profit margin added by the pharmacy.