In November 2013, a car dealer is trying to determine how many cars to order from the manufacturer for 2014. A car ordered in 2013 cost $10000. The dealer expects that each car ordered from the manufacturer will cost 4% to 8% more in 2014. The selling price for each car in 2013 was $15000 but the dealer expects he will have to give a discount because of heavy competition, and that the selling price in 2014 will be between 93% and 98% of the 2013 price. The dealer expects to sell between 700 and 900 cars.

Refer to the Car Dealership Problem and start with the original values. The manufacturer offered the dealer following options. If the dealer wants to chose an option that would give the lowest cost price, which one should the dealer choose?

a.850 cars for 4.0% cost increase

b.840 cars for 5.0% cost increase

c.830 cars for 6.5% cost increase

d.820 cars for 8.0% cost increase

e.Either B or C