Question

Deanne Baldwin offered an automobile dealer $150 over the estimated dealere coet on a car with a base price of $24.495 and options total of $1.600. The dealer's costs were 89.7 of the base price and 10% of the aptions. The destination charge was $720. What was her offer?​

Answer 1

The dealer's estimated cost of the car is $742.13.

The given parameters:

• Amount offered to the dealer = $150
• Base price of the car, = $24.495
• Options total, = $1.6
• Dealer's cost = 89.7% of the base price + 10% options
• Destination charge = $720

What is offer price?

• This the amount a dealer proposes to sell his/her asset.

The total offer price of the car is calculated as follows;

Base and option cost = (0.897 x $24.495) + (0.1 x 1.6)

                                    = $22.13

The total offer price = Base and option cost + destination charge

                                 = $22.13 + $720

                                 = $742.13

Thus, the dealer's estimated cost of the car is $742.13

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