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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

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 cost increase is 5.8%. The dealer targets to sell 880 cars. If the dealer offers a discount between 2.5% and 3.0% on the 2013 selling price, he can:

a. Make at least $3,493,600

b. Make $3,526,600 if he sells half the cars at a discount of 3.0% and the other half at discount of 2.5%

c. Make $3,554,500 at most

d. Both A and B are correct

e. A and B and C are correct

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