Question

The dealer's cost for 390 cars is $3,124. He sells 320 of the cars and takes in $4,893,500. How much income will he have made when he sells the remaining 70 cars if their total selling price is $1,042,300?

Answer 1

$4,717,440

Explanation:

The dealer's total revenue from the sale of all 390 cars will be ...

$4,893,500 +1,042,300 = $5,935,800

His cost for those 390 cars is apparently ...

390 × $3,124 = $1,218,360

His income from the sale of the cars will be the difference between his revenue and his cost:

$5,935,800 -1,218,360 = $4,717,440