The cost of setting up the type of a magazine is ' 1000. The cost of running…
2024
The cost of setting up the type of a magazine is ' 1000. The cost of running the printing machine is 120 per 100 copies. The cost of paper, ink and so on is 60 paisa per copy. The magazines are sold at 2.75 each. 900 copies are printed, but only 784 copies are sold. What is the sum to be obtained from advertisements to give a profit of 10% on the cost?
- A.
730
- B.
726
- C.
678
- D.
736
Attempted by 3 students.
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Correct answer: B
Solution:
Setup cost = 1000.
Printing machine cost = 120 per 100 copies → for 900 copies: 120 × (900/100) = 120 × 9 = 1080.
Paper, ink, etc. = 0.6 per copy → for 900 copies: 0.6 × 900 = 540.
Total cost = 1000 + 1080 + 540 = 2620.
Required profit = 10% of 2620 = 262. Amount to recover = 2620 + 262 = 2882.
Revenue from sold copies = 784 × 2.75 = 2156.
Amount needed from advertisements = 2882 − 2156 = 726.
Answer: 726