Homework help!! math ques.?

Question

a new honda has a list price of $25,800. suppose that the dealer markup on this car is 15%. what is the dealer's cost?

you dont have to answer. just explain what a dealer markup is or help me set up the equation.

thanks:)

Answer 1

Dealer markup is a percentage of what the customer pays that the company earns. In this situation 85% of what the customer pays is the cost of the car to the dealer, 15% is what goes directly to the dealer (the profit).

Cost x (1.15)= $25,800

(1.15 is 115%)

Cost=25800/1.15

Cost= $22434.78

Answer 2

ok

ok

easy multiply 25,800 by .15

that would be the markup

add it to 25,800 for the total cost ;)