Miguel purchased a $51,000 RV for the family. The dealer told Miguel that there is a 30 percent markup on selling price for this type of vehicle.
a.) What was the amount of the dealer’s markup?
b.) What was the dealer’s original cost?
(b) 51000/1.30
(a) subtract that from the selling price.
To find the answers to the questions, we can use the concept of markup.
a.) The amount of the dealer's markup can be calculated by multiplying the selling price by the markup percentage. In this case, the selling price is $51,000 and the markup percentage is 30%.
Markup = Selling Price x Markup Percentage
Markup = $51,000 x 30%
To calculate this, we multiply 51,000 by 0.30 (which is the decimal form of 30%).
Markup = $51,000 x 0.30
Markup = $15,300
Therefore, the dealer's markup is $15,300.
b.) To calculate the dealer's original cost, we need to subtract the markup from the selling price.
Dealer's Original Cost = Selling Price - Markup
Dealer's Original Cost = $51,000 - $15,300
Dealer's Original Cost = $35,700
Therefore, the dealer's original cost was $35,700.