Guest guest Posted March 22, 2003 Report Share Posted March 22, 2003 Dear Kim, I need more information for questions #11, it does not appear to ask a question but to give information only. To answer question #6: Use Ration/Proportion Method (See tutorials in the Files section) to determine the 'raw' cost of thirty - 30 tablets. Cost of 100 Tablets = $90.00 $90...........$ X -------.....-------- 100 tab......30 tab 90 x 30 -------- = $27.00 100 The Pharmacy paid $27 for the 30 tablets. Selling them for the same price does not give the pharmacy a profit. Adding a flat fee of $4.50 = the SELLING PRICE of $31.50 . $27.00 + $4.50 = $31.50 Answer is #3 = $31.50 I hope this helps you. Good luck on the exam. Respectfully, Jeanetta Mastron CPhT BS Chemistry Pharmacy Technician Educator Founder/Owner > There were a few questions on the practice test that I had trouble > answering (AWP). Could someone explain to me how this is done? Is > there a forumla that I should know? > > Thanks > Kim > > > 6. If a pharmacy pricing formula is the average wholesale price (AWP) > plus > $4.50 and the AWP is $90 for 100 tablets, what is the charge to the > customer > for a prescription for 30 tablets? > 1. $27.50 > 2. $30.50 > 3. $31.50 > 4. $94.50 > > > 11. A pharmacy bases its prices on AWP plus a professional fee as > follows: > Fee AWP > $2.00 $25.00 and under > $5.00 $25.01 - $50.00 > $10.00 $50.01 - $75.00 > $20.00 $75.01 and over Quote Link to comment Share on other sites More sharing options...
Guest guest Posted March 23, 2003 Report Share Posted March 23, 2003 > > 11. A pharmacy bases its prices on AWP plus a professional fee as > > follows: > > Fee AWP > > $2.00 $25.00 and under > > $5.00 $25.01 - $50.00 > > $10.00 $50.01 - $75.00 > > $20.00 $75.01 and over A prescription is received that reads " Sig: 2 tabs b.i.d. x 25 days. " If the AWP of this drug is $321.66 for 500 tablets, what will be the retail price of the prescription? 1. $66.53 2. $70.20 3. $74.33 4. $85.25 Sorry! oops, I only copied part of it! Here is the rest of the question. Thanks so much for your previous explanation, it really helped! Quote Link to comment Share on other sites More sharing options...
Guest guest Posted March 23, 2003 Report Share Posted March 23, 2003 > Dear Kim, > > I need more information for questions #11, it does not appear to ask > a question but to give information only. > > To answer question #6: > > Use Ration/Proportion Method (See tutorials in the Files section) to > determine the 'raw' cost of thirty - 30 tablets. > > Cost of 100 Tablets = $90.00 > > $90...........$ X > -------.....-------- > 100 tab......30 tab > > > 90 x 30 > -------- = $27.00 > 100 > > > The Pharmacy paid $27 for the 30 tablets. Selling them for the same > price does not give the pharmacy a profit. Adding a flat fee of > $4.50 = the SELLING PRICE of $31.50 . > > $27.00 + $4.50 = $31.50 > > Answer is #3 = $31.50 > > I hope this helps you. > Good luck on the exam. > > Respectfully, > > Jeanetta Mastron CPhT BS Chemistry > Pharmacy Technician Educator > Founder/Owner ************************************************ I think I did it wrong because I was adding the $4.50 to the total cost of the 100 and THEN setting up the equation. So, in fact with this question they are actually adding the $4.50 to each time they dispense a quantity of pills from the original 100, right? Rather than only adding $4.50 a single time. (hope i made sense) > Quote Link to comment Share on other sites More sharing options...
Guest guest Posted March 23, 2003 Report Share Posted March 23, 2003 Dear Kim, Yes you are correct! The $4.50 is ADDDED only AFTER the charge for the quantity of drug (tablets) is calculated. This is why it is often referred to a " dispensing fee " instead of a professional fee. Both terms are correct and mean the same thing. The Fee pays for your time gathering the drug, labeling, RPh time counseling, the materials used: vials, computer labels, sticky auxiliary labels, lighting, electricity etc to run the pharmacy during the time it took to fill the Rx. And after all is done some goes to your hourly wage and the hourly wage of the pharmacist. Years ago Pharmacies reported making about $2 to $5 dollars per perscripion after all is said and done known as a profit. Nowadays Pharmacies report only 25 cents to $1.00 per Rx clear/profit. This is why the Mom and Pop drug store is a dinasaur. The only way to make money is to keep the costs down ( to buy in volume) and sell in high volume (fill many scripts). The only pharmacies that can do this are the CHAIN pharmacies. Many pharmacies report 'going in the hole " on filling certain prescriptions. Selling sundries or other items offsets the cost of going in the hole or not making enough to make a decent profit. Sundries are greeting cards, ribbon, wraping paper, hosery, baby formula etc. This is how the Savon's began. Okay enough history - back to work! Take care, Jeanetta Mastron CPhT BS Chemistry Founder/Owner > > Dear Kim, > > > > I need more information for questions #11, it does not appear to > ask > > a question but to give information only. > > > > To answer question #6: > > > > Use Ration/Proportion Method (See tutorials in the Files section) > to > > determine the 'raw' cost of thirty - 30 tablets. > > > > Cost of 100 Tablets = $90.00 > > > > $90...........$ X > > -------.....-------- > > 100 tab......30 tab > > > > > > 90 x 30 > > -------- = $27.00 > > 100 > > > > > > The Pharmacy paid $27 for the 30 tablets. Selling them for the same > > price does not give the pharmacy a profit. Adding a flat fee of > > $4.50 = the SELLING PRICE of $31.50 . > > > > $27.00 + $4.50 = $31.50 > > > > Answer is #3 = $31.50 > > > > I hope this helps you. > > Good luck on the exam. > > > > Respectfully, > > > > Jeanetta Mastron CPhT BS Chemistry > > Pharmacy Technician Educator > > Founder/Owner > > ************************************************ > > I think I did it wrong because I was adding the $4.50 to the total > cost of the 100 and THEN setting up the equation. So, in fact with > this question they are actually adding the $4.50 to each time they > dispense a quantity of pills from the original 100, right? Rather > than only adding $4.50 a single time. (hope i made sense) > > Quote Link to comment Share on other sites More sharing options...
Guest guest Posted March 23, 2003 Report Share Posted March 23, 2003 Great explanation Jeanetta! Thanks so much > > > Dear Kim, > > > > > > I need more information for questions #11, it does not appear to > > ask > > > a question but to give information only. > > > > > > To answer question #6: > > > > > > Use Ration/Proportion Method (See tutorials in the Files section) > > to > > > determine the 'raw' cost of thirty - 30 tablets. > > > > > > Cost of 100 Tablets = $90.00 > > > > > > $90...........$ X > > > -------.....-------- > > > 100 tab......30 tab > > > > > > > > > 90 x 30 > > > -------- = $27.00 > > > 100 > > > > > > > > > The Pharmacy paid $27 for the 30 tablets. Selling them for the > same > > > price does not give the pharmacy a profit. Adding a flat fee of > > > $4.50 = the SELLING PRICE of $31.50 . > > > > > > $27.00 + $4.50 = $31.50 > > > > > > Answer is #3 = $31.50 > > > > > > I hope this helps you. > > > Good luck on the exam. > > > > > > Respectfully, > > > > > > Jeanetta Mastron CPhT BS Chemistry > > > Pharmacy Technician Educator > > > Founder/Owner > > > > ************************************************ > > > > I think I did it wrong because I was adding the $4.50 to the total > > cost of the 100 and THEN setting up the equation. So, in fact > with > > this question they are actually adding the $4.50 to each time they > > dispense a quantity of pills from the original 100, right? Rather > > than only adding $4.50 a single time. (hope i made sense) > > > Quote Link to comment Share on other sites More sharing options...
Guest guest Posted March 23, 2003 Report Share Posted March 23, 2003 Dear Kim and All, I have placed the following in the Discussion #2444 - Tutorial on AWP in the File section. Hope it helps you all out, Respectfully, Jeanetta Mastron CPhT F/O Message 2444 of 2445 From: " ouhkim " <ouhkim@...> Date: Sun Mar 23, 2003 7:34 am Subject: Re: AWP help? Sorry! oops, I only copied part of it! Here is the rest of the question. Thanks so much for your previous explanation, it really helped! 11. A pharmacy bases its prices on AWP plus a professional fee as follows: Fee AWP $2.00 $25.00 and under $5.00 $25.01 - $50.00 $10.00 $50.01 - $75.00 $20.00 $75.01 and over A prescription is received that reads " Sig: 2 tabs b.i.d. x 25 days. " If the AWP of this drug is $321.66 for 500 tablets, what will be the retail price of the prescription? 1. $66.53 2. $70.20 3. $74.33 4. $85.25 First we must transcribe the sig: Take two tablets orally twice a day for twenty-five days . That is 2 tabs x 2 doses/day x 25 = days = 100 tablets (50 doses) Cost is set up as a ratio/proportion $321.66......$X -------- = -------- 500 tab......100 tab Solved by cross-multiplying 321.66 x 100 ------------ = 64.33 = X$ 500 Raw cost for 100 tablets is $64.33 The professional fee is based upon range of raw cost or acquisition cost. Since this cost of $64.33 falls between the first cost and the last cost of the third range listed of: $10.00 $50.01 - $75.00 The selling cost will be the $20 from the range listed in #3 $10.00 $50.01 - $75.00 The actual cost would be $64.33 + $10.00 = $74.33 Therefore the final answer to this problem is selling cost is listed as Answer #3 . Hope this helps and good luck on the exam, Respectfully, Jeanetta Mastron CPhT BS Chemistry Pharmacy Technician Educator Founder/Owner of this site. Quote Link to comment Share on other sites More sharing options...
Guest guest Posted March 23, 2003 Report Share Posted March 23, 2003 Dear Kim, You and others are most welcome to any explanation and help that I can offer! It has been a pleasure to serve you and others during this 'round' of study before the March 2003 exam. It is especially wonderful to receive the appreciation that you have displayed publicly on this post. It means so much to me. The time and work put into maintaining the site and answering the questions is always offset by the thanks received. Respectfully, Jeanetta Mastron CPhT BS Chemistry Pharm Tech Educator Founder/Owner > > Dear Kim, > > > > Yes you are correct! The $4.50 is ADDDED only AFTER the charge for > > the quantity of drug (tablets) is calculated. This is why it is > often > > referred to a " dispensing fee " instead of a professional fee. Both > > terms are correct and mean the same thing. > >MESSAGE TRUNCATED BY JEANETTA Quote Link to comment Share on other sites More sharing options...
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