Question

Find the sticker price and dealer's cost for the MT-5 Sedan with a base price of $10,600.00. Options cost $542.00, $140.00, $318.00, and $580.00. Destination charges come to $440.00. Dealer pays 82% of the base price and 100% of the options.

Answer 1

• sticker: $12,620
• dealer's cost: $10,712

Explanation:

The total cost of options is the sum of their individual costs.

total options = $542 +140 +318 +580 = 1580

The sticker price is ...

sticker price = base price + total options + destination charge

= $10600 +1580 +440

sticker price = $12,620

The dealer cost is ...

dealer cost = 82% × base price + 100% × total options + destination charge

= 0.82·$10600 +1580 +440

dealer cost = $10,712