Final answer:
To calculate the selling price with a 31% markup based on the selling price, use the equation Selling Price = $38,500 / (1 - 0.31), which results in $55,797 when rounded to the nearest dollar. The closest answer choice to this calculated price is D. $55,720.
Step-by-step explanation:
The question is about determining the selling price of a sports car based on a given markup percent. The car broker purchased the sports car for $38,500 and expects to markup the price by 31% based on the selling price. To find the selling price, we need to set up the equation: Selling Price = Purchase Price / (1 - Markup Percent). The 31% markup is written as a decimal, which is 0.31. The equation then becomes: Selling Price = $38,500 / (1 - 0.31). Solving this, we get the selling price to be $55,797.10. However, we are asked to round to the nearest dollar, so the final price will be $55,797.
None of the given options (A. $50,535 B. $47,435 C. $40,535 D. $55,720) exactly match this calculated price, which suggests there might be a typo in the options provided. However, the closest option to our calculated selling price is D. $55,720.