Question

ou see a used car you wish to buy. The dealer quotes you a price of $8,595. You have a blue book quotation of $7,400 for the same model and year. How much markup on cost is the dealer using?

Answer 1

Answer:

The markup price is 16.15 % .

Step-by-step explanation:

As given

The dealer quotes you a price of $8,595. You have a blue book quotation of $7,400 for the same model and year.

Formula

$Markup\ price = \frac{Change\ in\ price\times 100}{Car\ price\ in\ blue\ book\ quotation}$

Where

Change in price = Car price by dealer - Car price in blue book quotation .

Put values in the above

Change in price = 8595 - 7400

                           = $ 1195

$Markup\ price = \frac{1195\times 100}{7400}$

$Markup\ price = \frac{119500}{7400}$

Markup price = 16.15 % (Approx)

Therefore the markup price is 16.15 % .

Answer 2

Ok question are we using percentages?