Question

Jill Stetsonbocker is pricing a work truck that has a base price of $27,520, with options totaling $4,630 and a destination charge of $925. The dealer's cost is 91.5% of the base price and 88% of the options. a. What is the sticker price of the vehicle? b. What is the estimated dealer's cost? c. What will she pay if she can buy the vehicle for $200 less than the dealer's cost?

Answer 1

(a). $33075

(b). $30180.20

(c). $29980.20

Explanation:

(a). Sticker price = Base price + Options + Destination charge

= 27520 + 4630 + 925

= $33075

(b). Dealer's Price = 91.5% of base price + 88% of options + Destination Charge

= 91.5% of 27520 + 88% of 4630 + 925

= 25180.80 + 4074.40 + 925

= $30,180.20

(c). If she pays $200 less on vehicle than dealer's cost then total amount paid by her = 25180.80 + 4074.40 + (925-200)

= $29980.20