Question

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?

Answer 1

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).