Question

You see a used car you wish to buy. The dealer quotes you a price of $11,550. You have a blue book quotation of $8,400 for the same model and year. How much markup on cost is the dealer using?

Answer 1

The dealer is charging $3150 markup

Answer 2

37.5%

Explanation:

We have been given that the dealer quotes you price of a car $11,550. You have a blue book quotation of $8,400 for the same model and year.

First of all, we will subtract the blue book quotation price from the price quoted by dealer to get the amount of markup.

`\text{Mark-up}=\$11,550-\$8,400`

`\text{Mark-up}=\$3,150`

Now, we will find $3,150 is what percent of $8,400.

`\text{Mark-up percent}=(\$3150)/(\$8400)* 100`

`\text{Mark-up percent}=0.375* 100`

`\text{Mark-up percent}=37.5\%`

Therefore, the dealer is using 37.5% of markup on the cost.