Question

Choose the correct answer. you see a used car you wish to buy. the dealer quotes you a price of $9,550. you have a blue book quotation of $8,400 for the same model and year. how much markup on cost is the dealer using? it is %.

Answer 1

The answer is 13.69%.

Explanation:

Price quoted by the dealer = $9550

Price in the blue book = $8400

Difference in prices =
`9550-8400=1150` dollars

Now markup here means the amount added to the cost price of the car to get profit.

So, markup price is $1150.

And we will find $1150 in terms of percentage with respect to $8400.

This becomes:

`(1150)/(8400)*100= 13.69`%.

Hence, the answer is approx 13.69%.

Answer 2

The blue book has many prices in it. The one described here is not described as "cost", so it appears there is insufficient information.

If we assume the dealer's cost is $8400, then the markup is
.. (9550 -8400)/8400 * 100% ≈ 13.7%