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Kim Lee is buying a sedan that has a base price of $24,827. Theoptions total $1,242, and the destination charge is $970. Thedealer’s cost is 90% of the base price and 85% of the price ofthe options.a.What is the sticker price of the vehicle?b.What is the estimated dealer’s cost?c.What will Kim pay if he can buy the vehicle for $200 overthe dealer’s cost?

User Shashank Mishra
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1 Answer

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13 votes

SOLUTION:

Step 1:

In this question, we are given the following:

Kim Lee is buying a sedan that has a base price of $24,827.

The options total $1,242, and the destination charge is $970.

The dealer’s cost is 90% of the base price and 85% of the price of the options.

a. What is the sticker price of the vehicle?

Step 2:

We need to know the meaning of the sticker price of the vehicle:

By definition,

the Sticker price is the base price of an item

including the manufacturer's suggested retail price (MSRP), the manufacturer's installed options,

the manufacturer's destination charge,

and the fuel economy (mileage).





User Fadi Omar
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