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The markup over dealer's cost of a new car ranges from 13% to 24%. If the sticker price is...

Question:

The markup over dealer's cost of a new car ranges from 13% to 24%. If the sticker price is $26,000, over what range will the dealer's cost vary?

Markup

Markups are expressed as a percentage of the purchasing price of a product. The increased price is found by adding the purchasing price to the product of the markup percentage and the purchasing price.

Answer and Explanation:


The dealer's cost when the markup is 13% will be:


$$\begin{align} &26000+13\%*26000\\ =&26000+0.13*26000\\ =&\$29380 \end{align} $$


The dealer's cost when the markup is 24% will be:


$$\begin{align} &26000+24\%*26000\\ =&26000+0.24*26000\\ =&\$32240 \end{align} $$


Thus, the dealer's cost will vary between $29380 and $32240.


Learn more about this topic:

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How to Calculate Markup: Definition & Formula

from Principles of Marketing: Help and Review

Chapter 12 / Lesson 22
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