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An import car dealer sells three models of a car. The retail prices and the current dealer invoice prices (costs) for the basic models and
An import car dealer sells three models of a car. The retail prices and the current dealer invoice prices (costs) for the basic models and options indicated are given in the following two matrices (where "Air" means air-conditioning). We define the markup matrix to be M
minus
N (markup is the difference between the retail price and the dealer invoice price). Suppose that the value of the dollar has had a sharp decline and the dealer invoice price is to have anacross-the-board 15% increase next year. To stay competitive with domestic cars, the dealer increases the retail prices 10%. Calculate a markup matrix for next year's models and the options indicated.
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