Car Dealership's Exciting Profit Calculation

How much profit did the dealership make on the two vehicles it sold?

a) $2850
b) $4100
c) $2450
d) $3999

Answer:

By calculating the markup on each vehicle and subtracting the total cost price from the total selling price, we can determine that the dealership's total profit on the two vehicles is b. $4,100.

The exciting scenario involves a car dealership selling two vehicles and making a profit by utilizing different markups on each vehicle. The dealership first purchased a four-door sedan for $19,000, marked it up by 15%, accepted a trade-in for $5000, marked it up by 25%, and then sold both vehicles.

Let's break down the calculations: The selling price of the four-door sedan with a 15% markup on $19,000 is $21,850. The trade-in car was purchased for $5,000 and marked up by 25% to be sold at $6,250.

To calculate the total profit, we need to subtract the cost price (purchase price) from the selling price of each vehicle and then sum up the profits made from selling both vehicles. In this case, the total profit made by the dealership is $4,100.

Understanding profit calculation in such transactional scenarios is crucial for businesses to assess their financial gains and make informed decisions for future transactions. It's always exciting to see how markups and sales can contribute to a profitable outcome for a dealership!