The dealer's estimated cost of the car is $742.13.
The given parameters:
The total offer price of the car is calculated as follows;
Base and option cost = (0.897 x $24.495) + (0.1 x 1.6)
= $22.13
The total offer price = Base and option cost + destination charge
= $22.13 + $720
= $742.13
Thus, the dealer's estimated cost of the car is $742.13
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