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Jacob North wants to buy a 4-year old sedan. His friend has a V8 4-door sedan that he will sell Jacob at wholesale. The car has a manual transmission, a DVD player, leather sets, a power sunroof and 53,480 miles. A dealership down the street has a V6 4-door sedan that is being sold at retail. That car has power mirrors, front bucket seats, aluminum wheels, and 73,840 miles. It does not have air conditioning. Which car costs less, and how much less?

Respuesta :

The V8 from Jacob’s
friend will cost
$265 less.
V6 Retail: $15,500 + ($250 + $220+ $120) – $850 – $1,775 = 13,465
V8 wholesale:
$13,270 + ($540 + $240 + $475) – $650 – $675 = $13,200

$13,465 – $13,200
= $265.
Jacob Norths Friends car is less because the dealer ship is selling a V6 4-door sedan that is being sold at retail and Jacobs friend is selling a  V8 4-door sedan at wholesale. When something is being sold at retail its more expensive because the person selling the item needs to make a profit in this case the dealership owner and Jacobs friend is selling it at wholesale which is cheaper,.

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