Question
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
MN
(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 an across-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.
Dealer invoice price | Retail Price | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Basic Car | Air | AM/FM Radio | Cruise Control | Basic Car | Air | AM/FM Radio | Cruise Control | ||||||||
Model A | $30,922 | $2333 | $835 | $452 | Model A | $35,860 | $2882 | $1451 | $624 | ||||||
Model B | $34,865 | $1563 | $696 | $394 | =N | Model B | $39,660 | $1844 | $836 | $511 | =M | ||||
Model C | $41,864 | $2859 | $1181 | $679 | Model C | $45,591 | $3383 | $1428 | $852 |
Calculate a markup matrix for next year's models. Select the correct choice below and, if necessary, fill in the answer box(es) to complete your choice.
Basic Car | Air | AM/FM Radio | Cruise Control | |||
---|---|---|---|---|---|---|
Model A | $nothing | $nothing | $nothing | $nothing | ||
Model B | $nothing | $nothing | $nothing | $nothing | ||
Model C | $nothing | $nothing | $nothing | $nothing |
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