Chapter 8 Review

Chapter 8 Review

Sticker Price = Base Price + Options + Destination Charge

Duwayn Archer sees a minivan that has a base price of $13,785.  Factory-installed options total $1732. There is a destination charge of $440.  What is the sticker price of the minivan?

Dealer’s Cost = Percent (%) of Base Price + Percent (%) of Options Price + Destination Charge

Nancy Clark is interested in a 4-wheel drive pickup that has a base price of $11,050, options totaling $1349, and a destination charge of $390.  She has read that the dealer’s cost is about 82% of the base price and 80% of the price of the options.  What is the estimated dealer’s cost that Nancy should keep in mind when making an offer?

Avg. Retail Price = Avg. Retail Value + Additional Options – Options Deductions – Mileage Deduction

August LaVoy owns a used Sport Van model WC21 with automatic transmission valued at $13,875, add $100 for an AM/FM stereo, and deduct $550 for no air-conditioning.  What is the average retail price that August should keep in mind when pricing her car for sale?

Total cost = add variable + fixed costs

Cost per mile = total costs divided by the number of miles driven

 Nora Hovey drover her car 13,220 miles last year.  Her records show that fixed costs totaled $1290.60 and variable costs totaled $1940.40. How much did it cost per mile for Nora to operate her car last year?

Total Lease Cost = (Number of Payments x Amt. of Payment) + Deposit + Title Fee + License Fee

Nate leased a GMC truck for his flower shop.  He pays $299 per month for 48 months.  His deposit was $300.  He paid a $60 title fee and a $44 license fee.  What is the total lease cost?

 Kesha rented a car for 3 days at $35.95/day plus $.22 a mile.  She drove the car 630 miles.  Gasoline cost $32.60.  How much did it cost per mile ?

*To find the total cost only we have to

Find the total cost by:

Taking the number of days renting and multiplying by the cost per day + Add any extra coverage (such as the collision waiver), gas, plus the cost per mile (number of miles driven x cost per mile) = total cost

*Cost Per Mile =        Total Cost ------- (a +b) divided by  # of Miles Driven