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An import car dealer sells three models of a car. The retail prices and the current dealer invoice prices (costs) for the basic models and options indicated are given in the following two matrices (where "Air" means air-conditioning). We define the markup matrix to be M - N (markup is the difference between the retail price and the dealer invoice price). Suppose that the value of the dollar has had a sharp decline and the dealer invoice price is to have an across-the-board 15% increase next year. To stay competitive with domestic cars, the dealer increases the retail prices 10%. Calculate a markup matrix for next year's models and the options indicated. Model A Model B Model C Dealer invoice price AM/FM Radio $830 $669 Basic Car Air $30,862 $2225 $34,659 $1599 $41,702 $2865 $1151 Cruise Control $455 $315 = N $705 ... Basic Car $35,466 Model A Model B Model C $45,056 $39,808 Retail Price AM/FM Air Radio $2906 $1176 $1869 $769 $3320 $1480 Cruise Control $620 $500 = M $839 Calculate a markup matrix for next year's models. Select the correct choice below and, if necessary, fill in the answer

An import car dealer sells three models of a car. The retail prices and the current dealer invoice prices (costs) for the basic models and options indicated are given in the following two matrices (where "Air" means air-conditioning). We define the markup matrix to be M - N (markup is the difference between the retail price and the dealer invoice price). Suppose that the value of the dollar has had a sharp decline and the dealer invoice price is to have an across-the-board 15% increase next year. To stay competitive with domestic cars, the dealer increases the retail prices 10%. Calculate a markup matrix for next year's models and the options indicated. Model A Model B Model C Dealer invoice price AM/FM Radio $830 $669 Basic Car Air $30,862 $2225 $34,659 $1599 $41,702 $2865 $1151 Cruise Control $455 $315 = N $705 ... Basic Car $35,466 Model A Model B Model C $45,056 $39,808 Retail Price AM/FM Air Radio $2906 $1176 $1869 $769 $3320 $1480 Cruise Control $620 $500 = M $839 Calculate a markup matrix for next year's models. Select the correct choice below and, if necessary, fill in the answer

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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= An import car dealer sells three models of a car. The retail prices and the current dealer invoice prices (costs) for the basic models and options indicated are given in the following two matrices (where "Air" means air-conditioning). We define the markup matrix to be M - N (markup is the difference between the retail price and the dealer invoice price). Suppose that the value of the dollar has had a sharp decline and the dealer invoice price is to have an across-the-board 15% increase next year. To stay competitive with domestic cars, the dealer increases the retail prices 10%. Calculate a markup matrix for next year's models and the options indicated. Model A Model B Model C Dealer invoice price AM/FM Basic Car Air Radio $30,862 $2225 $830 $34,659 $1599 $669 $41,702 $2865 $1151 Basic Car Cruise Control $ $ $ Cruise Radio Control Model A $ $ $ Model B $ $ $ Model C $ $ $ (Round to the nearest integer as needed.) OB. The markup matrix for next year's model does not exist. Air $455 $315 = N $705 Model A Model B Model C AM/FM Retail Price Air $2906 $1869 Calculate a markup matrix for next year's models. Select the correct choice below and, if necessary, fill in the answer box(es) to complete your choice. O A. AM/FM Radio Basic Car $35,466 $1176 $39,808 $769 $45,056 $3320 $1480 Cruise Control $620 $500 = M $839
Transcribed Image Text:= An import car dealer sells three models of a car. The retail prices and the current dealer invoice prices (costs) for the basic models and options indicated are given in the following two matrices (where "Air" means air-conditioning). We define the markup matrix to be M - N (markup is the difference between the retail price and the dealer invoice price). Suppose that the value of the dollar has had a sharp decline and the dealer invoice price is to have an across-the-board 15% increase next year. To stay competitive with domestic cars, the dealer increases the retail prices 10%. Calculate a markup matrix for next year's models and the options indicated. Model A Model B Model C Dealer invoice price AM/FM Basic Car Air Radio $30,862 $2225 $830 $34,659 $1599 $669 $41,702 $2865 $1151 Basic Car Cruise Control $ $ $ Cruise Radio Control Model A $ $ $ Model B $ $ $ Model C $ $ $ (Round to the nearest integer as needed.) OB. The markup matrix for next year's model does not exist. Air $455 $315 = N $705 Model A Model B Model C AM/FM Retail Price Air $2906 $1869 Calculate a markup matrix for next year's models. Select the correct choice below and, if necessary, fill in the answer box(es) to complete your choice. O A. AM/FM Radio Basic Car $35,466 $1176 $39,808 $769 $45,056 $3320 $1480 Cruise Control $620 $500 = M $839
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