A car manufacturer sells a car to
dealer for 20% profit, who in turn
sells it to a retailer for a 15% profit.
The retailer sells it to a customer for
10% loss. The customer pays $6210
for the car
What is the
manufacturer's profit on the car?
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Answer:
Step-by-step explanation:
Let the cost price of car for the manufacturer = X
Selling price of manufacturer to dealer = X + 20%
= 1.2X
Selling price of Dealer to Retailer = 1.15 (1.2X)
= 1.38X
Selling price retailer to customer = $ 6,210.00
= 1.38X - (1.38X x 10/100)
= 1.38X - 13.8X/100
=1.38X-.138X
=1.242X
ie 1.242X = 6210
Therefore X = 6210/1.242
=$ 5,000.00
Therefore manufacturer profit = 20% of $ 5000
= $ 1,000.00
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