Question

ou see a used car you wish to buy. The dealer quotes you a price of $8,595. You have a blue book quotation of $7,400 for the same model and year. How much markup on cost is the dealer using?

Answer 1

16.15%

Explanation:

Answer 2

The markup price is 16.15 % .

Explanation:

As given

The dealer quotes you a price of $8,595. You have a blue book quotation of $7,400 for the same model and year.

Formula

`Markup\ price = (Change\ in\ price* 100)/(Car\ price\ in\ blue\ book\ quotation)`

Where

Change in price = Car price by dealer - Car price in blue book quotation .

Put values in the above

Change in price = 8595 - 7400

= $ 1195

`Markup\ price = (1195* 100)/(7400)`

`Markup\ price = (119500)/(7400)`

Markup price = 16.15 % (Approx)

Therefore the markup price is 16.15 % .