Question

Musa ships cars into Ghana, Nigeria and Benij republic from the United States of America. The import duty costs are 10%, 25% and 12% respectively for used cars from the three countries and 25%, 40% and 20% for new cars. He has landed a used Benz C300 and a new Toyota Highlander for $12,000 and $30,000 respectively. For how much should he markup the cars, if he desires to make a minimum profit of 15% after giving a discount of 10% to a reseller in Abuja, Nigeria?

Answer 1

The Benz C300 markup should be $15525. The markup price for the new Toyota Highland should be $43470

Step-by-step explanation:

For the used Benz C300

Initial price $12,000

Apply import duty for Nigeria which is 25%, which is similar to increasing the price by 25%

100% +25%=125%

12000*125/100 = $15000

Apply the 15% profit

100%+15%=115%

15000*115/100 =$17250

Apply the 10% discount, reducing the price by 10%

100%-10%=90%

17250*90/100 =$15525

The Benz C300 markup should be $15525

For the Toyota Highlander

Initial price = $30,000

Apply import duty for Nigeria for new cars, which is 40%, which is similar to increasing the car price by 40%

100%+40%=140%

30,000*140/100 =$42000

Apply the 15% profit

15%+100%=115%

115/100*42000 =$48300

Apply the 10% discount

100%-10%=90%

48300*90/100=$43470

The markup price for the new Toyota Highland should be $43470

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Percentage increase and decrease :brainly.com/question/11537235

Keywords : cars, import duty, cost, minimum profit, discount, reseller

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