3 The base price of the Scat R5 is $19,980,00. Options include polished chrome wheels for $366.00, sound package for $462.00, and tinted glass for $250.00. The destination charges come to $288.00. If the dealer pays 76% of the base price and 80% of the options, what will the sticker price and the dealer's cost be? Sticker price - Dealer's cost$

To calculate the sticker price and the dealer's cost, we will first add all the costs associated with the Scat R5 to find the sticker price. Then we will calculate how much the dealer pays based on the given percentages.

Sticker price: Base price of Scat R5: $19,980.00 Options: - Polished chrome wheels: $366.00 - Sound package: $462.00 - Tinted glass: $250.00 Destination charges: $288.00.

First, we add all these amounts together to get the sticker price: $19,980.00 + $366.00 + $462.00 + $250.00 + $288.00 = $21,346.00

The sticker price is $21,346.00.

Dealer's cost: Now, let's calculate how much the dealer pays. The dealer pays 76% of the base price and 80% of the options.

76% of the base price: 76/100 * $19,980.00 = $15,184.80

80% of the options: Polished chrome wheels: 80/100 * $366.00 = $292.80 Sound package: 80/100 * $462.00 = $369.60 Tinted glass: 80/100 * $250.00 = $200.00

Now, add the amounts the dealer pays for the options: $292.80 + $369.60 + $200.00 = $862.40

The dealer also pays 100% of the destination charges, which is $288.00.

Totals up to find the dealer's cost: $15,184.80 (base price) + $862.40 (options) + $288.00 (destination charges) = $16,335.20

The dealer's cost is $16,335.20.

To find the difference between the sticker price and the dealer's cost, we subtract the dealer's cost from the sticker price: $21,346.00 (sticker price) - $16,335.20 (dealer's cost) = $5,010.80

So, the difference between the sticker price and the dealer's cost is $5,010.80.

Extra: The sticker price of a car is the total price a dealership displays on a car and generally includes various charges such as base price, options, and destination charges. Options refer to additional features that can be added to the vehicle for an extra cost, which can enhance the comfort, functionality, or aesthetics of the car. Destination charges are the fees associated with delivering the vehicle from the manufacturer to the dealership.

The dealer's cost, often referred to as the invoice price, represents what the dealer has to pay the manufacturer for the vehicle. This cost doesn't typically include the dealer's profit or any additional overheads like advertising, sales commissions, or operating costs for the dealership. When a dealer negotiates with a customer, understanding their own cost versus the sticker price helps them determine how much room they have to negotiate still maintaining a profitable margin. The difference between the sticker price and the dealer's cost is commonly perceived as the negotiating room or the potential discount a buyer could negotiate on the vehicle.