please help me withnthismproblem

Question

The markup over​ dealer's cost of a new car ranges from 20​%

to 25% If the sticker price is $29,000​, over what range will the​ dealer's cost​ vary?

Answer 1

Assume the sticker price of $29,000 includes the dealer markup.

If the markup was 20% then the sticker price is 1.2 x what dealer paid manufacturer.

This means the pre-markup price is $29,000/1.2 = $24,166.67

If the markup was 25% then the sticker price is 1.25 x what dealer paid manufacturer.

This means the pre-markup price is $29,000/1.25 = $23,200.00

Thus the dealer paid between 23,200.00 and $24,166.67 before applying the markup.