Explanations:
To calculate the cost of the car before the markup, we can use the formula:
Cost = Selling Price / (1 + Markup Percentage)
In this case, the selling price is $5999 and the markup percentage is 20%, or 0.2.
Plugging these values into the formula, we get:
Cost = $5999 / (1 + 0.2) = $5999 / 1.2 = $4999.50
Therefore, the dealer paid $4999.50 for the car.
