Problema Solution
The markup over dealer's cost of a new car ranges from 10% to 24%. If the sticker price is 29,000, over what range will the dealer's cost vary?
Answer provided by our tutors
Let
Cost = c (by cost we mean dealer cost)
Markup = Sale price − Cost
Sale price = $290,000
Markup = 290,000 - c
Markup = 10% of Cost that is
Markup = 10% of c
Markup = 0.10c
No we have the following equation:
0.10c = 290,000 - c
........
click here to see the equation solved for c
........
c = $263,636.364
The dealers cost for 10% markup is $263,636.364.
Fir Markup = 24% of Cost we have Markup = 0.24c:
0.24c = 290,000 - c
........
click here to see the equation solved for c
........
c = $233,870.968
The dealers cost will vary in the interval [$233,870.968, $263,636.364].