Question

In November 2013, a car dealer is trying to determine how many cars to order from the manufacturer for 2014. A car ordered in 2013 cost $10000. The dealer expects that each car ordered from the manufacturer will cost 4% to 8% more in 2014. The selling price for each car in 2013 was $15000 but the dealer expects he will have to give a discount because of heavy competition, and that the selling price in 2014 will be between 93% and 98% of the 2013 price. The dealer expects to sell between 700 and 900 cars. Refer to the Car Dealership Problem and start with the original values. The cost increase is 6.38%. If the dealer's profits are $2,734,980, what was the discount and how many cars did the dealer sell?

Answer 1

The car dealer sold between 700 - 900 cars, and offered discount ed prices between 97% and 91.2% of 2013 price and ended the year with a profit of $2,734,980

Step-by-step explanation:

This problem leaves us with 3 unknowns. The Volume sold, the price sold and of course the discount offered.

In this instance we should also respond the same way the question was given. By offering ranges to either unknowns.

The attached file shows the full workings and helps with better presentation