Question

How much did Apex Autos charge for the customer's old car? and what was the total profit that Apex Autos made on the entire scenario described?

Apex Autos acquired a new car from the manufacturer for an invoice price of $21,930.00, and they marked up the car by 14% to arrive at a sticker price. A customer then came into Apex Autos, traded in her old car, and purchased this new car. She paid the sticker price minus the amount of money she was given for her old car, which was $7840.00. Apex Autos then marked up the customer's old car by 22% and sold it to somebody else.

Answer 1

Apex Autos charged `$9564.90` for the old car
Apex Autos made a total profit of `$4795`

Explanation:

We can work this step by step, first, we want to figure out how much profit was gained from the "new car"

Set up an equation where `x` is the profit from the "new car"
`$21,930.00*.14=x`
`x=$3070.20`

In my opinion, the fact that the customer paid the price minus the amount of money given was extra information, all we need to know was that Apex Autos bought the "old car" for `$7840.00`

Now we want to find the profit from the old car, and the new cost after the mark up of the old car

`$7840.00*.22=$1724.80` giving us the profit of the old car

Now we find how much the new old car sold for
`$7840.00+$1724.80=$9564.90`

To find the amount of profit, we can just add the profit of both cars
`$1724.80+$3070.20=$4795`