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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 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 dealer sold 875 cars with the highest cost increase. If the profit goal is $3,400,000, what is the discount on selling price that the dealer offered? Possible Answers: 2,3,4,5,6 percent

-Refer to the Car Dealership Problem and start with the original values. Which of the following options gives a dealer's profit of $2,972,025 if the number of cars sold is 777?

Possible Answers:

a. 7.00% cost increase, 2% discount on 2013 selling price

b. 7.25% cost increase, 3% discount on 2013 selling price

c. 7.50% cost increase, 4% discount on 2013 selling price

d. 7.75% cost increase, 5% discount on 2013 selling price

e. 8.00% cost increase, 6% discount on 2013 selling price

-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

Refer to the Car Dealership Problem and start with the original values. The cost increase is 6.38%. If the dealer's profits are $2,734,980, what was the discount and how many cars did the dealer sell?

	a.	4% discount on 2013 selling price, 760 cars sold
	b.	5% discount on 2013 selling price, 770 cars sold
	c.	6% discount on 2013 selling price,790 cars sold
	d.	7% discount on 2013 selling price,800 cars sold
	e.	2% discount on 2013 selling price,780 cars sold

Refer to the Car Dealership Problem and start with the original values. If 900 cars are sold, and the cost increase is 5.75%, the dealer will make a profit of $3,608,550 when the discount on the selling price is:

	a.	2.77%
	b.	3.27%
	c.	1.94%
	d.	3.92%
	e.	1.62%

Refer to the Car Dealership Problem and start with the original values. With the highest discount and the lowest cost increase, the dealer will make a profit of:

	a.	$2,573,750 if he sells 725 cars
	b.	$3,100,875 if he sells 800 cars
	c.	$2,918,125 if he sells 650 cars
	d.	$2,736,875 if he sells 825 cars
	e.	$3,436,875 if he sells 875 cars

Refer to the Car Dealership Problem and start with the original values. If the dealer decides to offer a discount of 5% on 2013 selling price, which of the following options will return the highest profit?

	a.	sell 900 cars, with 8% cost increase
	b.	sell 850 cars, with 7% cost increase
	c.	sell 800 cars, with 6% cost increase
	d.	sell 750 cars, with 5% cost increase
	e.	sell 700 cars , with 4% cost increase

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

Refer to the Car Dealership Problem and start with the original values. If the cost increase is between 7% and 8% and the dealer targets to sell 880 cars at a discount between 2% and 3% on the 2013 selling price, how much profit can the dealer make?

	a.	The most the dealer can make is $3,520,000
	b.	The least the dealer can make is $3,520,000
	c.	The most the dealer can make is $3,388,000
	d.	The least the dealer can make is $3,388,000
	e.	Both a and d are correct

Refer to the Car Dealership Problem and start with the original values. If the cost increase is 7.11% and the dealer targets to sell 850 to 900 cars at a discount between 2% - 4% on 2013 selling price. Which of the following statements is true?

	a.	The dealer makes profits of $3,237,040 if he sells 860 cars at a 3.5% discount on 2013 selling price
	b.	The dealer makes profits of $3,444,320 if he sells 880 cars at a 2.5% discount on 2013 selling price
	c.	The dealer makes profits of $3,483,460 if he sells 890 cars at a 2.5% discount on 2013 selling price
	d.	The dealer makes profits of $3,167,525 if he sells 850 cars at a 3.75% discount on 2013 selling price
	e.	All of the above are true

Refer to the Car Dealership Problem and start with the original values. The cost increase is 6.66%. The dealer targets sales between 830 and 850 cars at a discount between 6% and 7% on the 2013 selling price. Given these constraints, which of the following is NOT a possible profit level?

	a.	$2,758,560
	b.	$2,791,400
	c.	$2,850,220
	d.	$2,922,335
	e.	$2,918,900

Refer to the Car Dealership Problem and start with the original values. The cost increase is uncertain. The dealer sells 789 cars at a discount between 4% and 6% on the 2013 selling price. If profits $2,899,575, which of the following statements is true?

	a.	The cost increase is 5.5% and the discount on 2013 selling price is 5.25%
	b.	The cost increase is 6.0% and the discount on 2013 selling price is 4.25%
	c.	The cost increase is 5.0% and the discount on 2013 selling price is 5.50%
	d.	The cost increase is 6.5% and the discount on 2013 selling price is 4.50%
	e.	both c and d

Refer to the Car Dealership Problem and start with the original values. If the cost increase is 5.13%, which one of the combinations below gives the lowest profit?

	a.	850 cars sold with 6% discount on 2013 selling price
	b.	800 cars sold with 4.5% discount on 2013 selling price
	c.	900 cars sold with 7% discount on 2013 selling price
	d.	750 cars sold with 2.5% discount on 2013 selling price
	e.	750 cars sold with 2% discount on 2013 selling price

Refer to the Car Dealership Problem and start with the original values. The manufacturer has guaranteed that the cost increase will be between 4.5% and 5.5%. By the end of 2014, the dealer has sold 900 cars at a discount of 4% on the 2013 selling price. What were the profits generated?

	a.	$3,600,000
	b.	$3,510,000
	c.	$3,450,000
	d.	$3,556,000
	e.	$3,456,000