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A car manufacturer produced a car at a cost of d dollars and sold it

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Bunuel
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A car manufacturer produced a car at a cost of d dollars and sold it [#permalink] New post   26 Jun 2018, 21:16
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A car manufacturer produced a car at a cost of d dollars and sold it to a dealer at a price 20 percent higher than the production cost. If the dealer sold the car to a consumer for 15 percent more than the dealer paid for it, what did the car cost the consumer, in dollars?

A) 1.05d

B) 1.23d

C) 1.30d

D) 1.35d

E) 1.38d
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E
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DavidTutorexamPAL
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Re: A car manufacturer produced a car at a cost of d dollars and sold it [#permalink] New post   26 Jun 2018, 22:33
Bunuel wrote:
A car manufacturer produced a car at a cost of d dollars and sold it to a dealer at a price 20 percent higher than the production cost. If the dealer sold the car to a consumer for 15 percent more than the dealer paid for it, what did the car cost the consumer, in dollars?

A) 1.05d

B) 1.23d

C) 1.30d

D) 1.35d

E) 1.38d


As all we're given are variables, we'll pick easy numbers to calculate with.
This is an Alternative approach.

Say the car was produced for 100 dollars. Then it was sold for 120 dollars.
Then the dealer sold it for an additional 15%, giving a total of 120 + 10% + 5% = 120 + 12 + 6 = 138 dollars.
As d = 100, our answer is 138/100*d = 1.38d

(E) is our answer
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A car manufacturer produced a car at a cost of d dollars and sold it [#permalink] New post   26 Jun 2018, 22:44
Percentage increase 20% -> Multiplicity is 1.2
Percentage increase 15% -> Multiplicity is 1.15

For series of percentages multiply the above values: 1.2 * 1.15 = 1.38

Answer: E
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Re: A car manufacturer produced a car at a cost of d dollars and sold it [#permalink] New post   26 Jun 2018, 23:04
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Solution



Given:
    • A car manufacturer produced a car at a cost of d dollars and sold it to a dealer at a price 20 percent higher than the production cost
    • The dealer sold the car to a consumer for 15 percent more than the dealer paid for it

To find:
    • The cost of the car to the consumer, in dollars

Approach and Working:
    • The price at which the car was sold to the dealer = d + 20% of d = 1.2d dollars
    • The price at which the car was sold to the consumer = 1.2d + 15% of 1.2d = 1.2d + 0.18d = 1.38d dollars

Hence, the correct answer is option E.

Answer: E
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Re: A car manufacturer produced a car at a cost of d dollars and sold it [#permalink] New post   26 Jun 2018, 23:50
The manufacturer produced the car for 1 d dollars.
The manufacturer sold it to the dealer for 1.2 d dollars. [20% Profit over 1 d = 0.2 d]
The dealer sold it to the customer for (1.2 + 0.18) d dollars. [15% Profit over 1.2 d = 0.18 d]
The customer purchased it for 1.38 d dollars.

Answer E
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A car manufacturer produced a car at a cost of d dollars and sold it [#permalink] New post   27 Jun 2018, 03:11
Bunuel wrote:
A car manufacturer produced a car at a cost of d dollars and sold it to a dealer at a price 20 percent higher than the production cost. If the dealer sold the car to a consumer for 15 percent more than the dealer paid for it, what did the car cost the consumer, in dollars?

A) 1.05d

B) 1.23d

C) 1.30d

D) 1.35d

E) 1.38d



Production price = d
Selling price to dealer = 120% of d = 1.2 d

Selling price to customer = 1.2 d * 115% = 1.38 d

Thus the best answer is E.
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A car manufacturer produced a car at a cost of d dollars and sold it [#permalink]
27 Jun 2018, 03:11
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