Question

Please help me! A dealership recently sold a 4-door sedan, which it purchased for $18,000, at 15% markup. It accepted a trade-in for it, and it paid $5000 for the trade. Next, it marked the trade-in up 25% and sold it in a week. What was the dealership's profit on these two vehicles?

Answer 1

Explanation:

The answer is 3950 $

First we will calculate the two profits the dealership earned.

1. Profit on purchase.

18000 x 15% = 18000 x 0.15

=2700 $

2. Profit on Sale:

5000 x 25% = 5000 x 0.25

= 1250$

3. Adding both profits:

Total profit = 2700 + 1250 = 3950 $