Dealership recently sold four-door sedan it purchased for $15,000 at 15% markup.It accepted a trade in for it, and it paid $3000 for the trade. The next day it marked it up 25% and sold it in week. What was the dealership's profit on these two vehicles?
A.$2450
B.$2750
C.$2599
D.$3000
A.$2450
B.$2750
C.$2599
D.$3000
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D. He is only getting the trade in value for the sedan he purchase because after he sold off the first car he owed 750 so the 25 percent mark up priced he received for the second car that he received from the trade was enough for him to get out of debt and keep the traded in value.
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15,000 x .15 = 2250
3000 x .25 = 750
profit = 3000
3000 x .25 = 750
profit = 3000
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Profit = 0.15*15,000 + 0.25*3000 = $3000
Answer D)
Answer D)