Question

A dealership purchased a four-door sedan for $15,000 and then sold it at 15% markup. The dealership paid the buyer $3000 for a trade-in, which was sold the following week at 25% markup. What was the dealership's profit on these two vehicles?

A) $3000
B) $2750
C) $2999
D) $2450

Answer 1

A) is the answer $3000

Answer 2

Answer: A) $ 3000

Explanation:

Here, dealership purchased a four-door sedan for $15,000 and then sold it at 15% markup.

Thus, his profit in this sedan = 15 % of $15000 =
`(15* 15000)/(100)` = $ 2250

And, The dealership paid the buyer $3000 for a trade-in, which was sold the following week at 25% markup.

Thus, his profit in this deal = 25 % of 3000 =
`(25* 3000)/(100)` = $ 750

The dealership's profit on these two vehicles = $ 2250 + $ 750 = $ 3000

Thus, Option A is correct.