You see a used car you wish to buy. The dealer quotes you a price of $9,550. You have a blue book quotation of $8,400 for the same model and year. How much markup on cost is the dealer using?

Question

anonymous · Answer

The markup is the amount the dealer charges that is ABOVE the standard amount. In practice it can mean the difference between retail and wholesale price but for this problem it means the difference, in percent, between $9550 and $8400.

To get this answer you need to set $8400 equal to 100% of the price P, and solve for markup M such that $8400/100% = $9550/X.

anonymous · Answer

Thank you! Helped a lot.