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A dealership sets car prices so that there is a 40% profit. If the dealership paid $5300 for a car how much would the sell it for?

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1 Answer

Josh
 
    If we let:
P=  selling price of the car
C= cost of the car to the dealer
 
Then the profit is P-C and the percent profit is 100*(P-C)/P and this is 40% so we have to solve
 
(P-C)=.4P so .6P=C or P=C/.6 we know C=5300 so P=8,833.33 is the price that will yield a 40% profit.
 
Jim