Dealer's cost + 5% = 23,727.90
(1 + .05) dealer's cost = 23,727.90
Dealer's cost = 23.727.90 / 1.05 = 22,598
The dealer's cost for the luxury sedan is $22,598. This is determined by setting up the equation based on the total price paid and solving for the original cost. By calculating, we find that the original dealer cost before the 5% markup is $22,598.
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