Answer :

AL2006

The dealer paid 'C' for it.  He decided to sell it for 10% more than C .

That would be (1.10 C) , and that's the $856.90 .  

So the equation is . . . 1.10 C = $856.90

Divide each side by 1.10 : C = $856.90 / 1.10

C =  $779

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