Choose the right answer. you see a used car that you want to buy. the dealer quotes a price of $9,550. you have a blue book quote of $8,400 for the same model and year. what is the profit margin used by the dealer? That’s to say %.
Answer 1
If we assume the reseller cost is $8400, the profit margin is ..(9550 -8400)/8400 * 100% ≈ 13.7%
answer 2
Walkthrough: Dealer Quoted Price = $9,550 Blue Book Price = $8,400 Price Difference = Dollars Now markup here means the value added to the cost price of the car to make a profit. So the markup price is $1150. And we’re going to find $1,150 as a percentage of $8,400. It becomes : %. Therefore, the answer is approximately 13.69%.