Question

You are selling automobiles at a 15% markup from the wholesale cost to you as a dealer. If a particular model costs you $3,050, at what retail price will you offer it?
$___

Answer 1

Answer:

The dealer will offer the model at a suggested retail price of US$ 3,508 (Rounding to the next whole number)

Step-by-step explanation:

1. Let's review the information given to us to answer the question correctly:

Mark-up from the wholesale cost = 15% = 0.15

Cost of a particular model = US$ 3,050

2. At what retail price will you offer this particular model?

For answering this question, we will use the following expression:

Retail price = Wholesale cost + mark-up

Replacing with the real values, we have:

Retail price = 3,050 + (3,050 * 0.15)

Retail price = 3,050 + 457.50

Retail price = 3,507.50

The dealer will offer the model at a suggested retail price of US$ 3,508 (Rounding to the next whole number)