An imported car has duty of 45% and then other charges of 27%. The car dealer puts a markup of 30% on the cost to the dealer. What does the customer pay (excluding GST) as a percentage of the landed price of the car? ANSWER = 239%
I don't understand the question.. so I don't even know where to begin answering it.
So, I was like "let's convert them all to decimals"
45% = 0.45
27% 0.27
Markup of 30% = 1.3
Add them all together
= 0.45 + 0.27 + 1.3
= 2.02 = 202%
Obviously, my answer is wrong.
Please help! It's really confusing.
I will give best answer to the most helpful.
I don't understand the question.. so I don't even know where to begin answering it.
So, I was like "let's convert them all to decimals"
45% = 0.45
27% 0.27
Markup of 30% = 1.3
Add them all together
= 0.45 + 0.27 + 1.3
= 2.02 = 202%
Obviously, my answer is wrong.
Please help! It's really confusing.
I will give best answer to the most helpful.
-
You need to multiply by (1+x) where x is the added percentage.
The original duty is 45%, so multiply by 1.45.
Next you multiply that by 1.27, and again by 1.3.
In total you end up with (1.45)(1.27)(1.3) and you get 2.39, or 239%.
The original duty is 45%, so multiply by 1.45.
Next you multiply that by 1.27, and again by 1.3.
In total you end up with (1.45)(1.27)(1.3) and you get 2.39, or 239%.
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so why did you add a 1 to the 1.3?
let us suppose x is the cost of the car from the land of origin. By the time the cars reaches the us the (whole seller) pays a 45% tax. So the whole seller pays (x+.45x) or simply 1.45x. The dealer pays the whole seller for the car, and say this is where the other 27% fee comes from as the whole seller wants to make money too. The car dealer is paying (1.45x+1.45*.27*x) or 1.84x. Now the customer buys from the dealer and the dealer makes a 30% markup: (1.84x+1.84*.3*x)=2.39x. to convert the ratio to a percent you multiply it by 100%.
a short cut method would be 100%*1.45*1.27*1.3*x.
but it really isn't a matter of if you can do the shortcuts, its a matter of if you know what is going on during each step.
let us suppose x is the cost of the car from the land of origin. By the time the cars reaches the us the (whole seller) pays a 45% tax. So the whole seller pays (x+.45x) or simply 1.45x. The dealer pays the whole seller for the car, and say this is where the other 27% fee comes from as the whole seller wants to make money too. The car dealer is paying (1.45x+1.45*.27*x) or 1.84x. Now the customer buys from the dealer and the dealer makes a 30% markup: (1.84x+1.84*.3*x)=2.39x. to convert the ratio to a percent you multiply it by 100%.
a short cut method would be 100%*1.45*1.27*1.3*x.
but it really isn't a matter of if you can do the shortcuts, its a matter of if you know what is going on during each step.