Question

The cost of setting up a magazine is Rs 2800. The cost of paper and ink is Rs. \[\dfrac{{80}}{{100}}\] copies and printing cost is Rs. \[\dfrac{{160}}{{100}}\] copies. In the last month 2000 copies were printed but only 1500 copies could be sold at Rs.5 each and rest were destroyed. Total \[25\% \] profit on the sale price was realized. There is one more resource of income from the magazine which is advertising. What sum of money was obtained from the advertising in magazines?

Answer 1

Hint:
In this question, we need to find the total expenditure on magazines and total profit. Here Expenditure = cost of setting up a magazine that is Rs.2800 \[ + \] cost of paper and ink that is Rs. \[\dfrac{{80}}{{100}}\] copies + cost of printing is Rs. \[\dfrac{{160}}{{100}}\] copies. We will calculate expenditure for 2000 copies. We will find profit on 1500 copies because 500 copies were destroyed. Let’s see how we can find the money obtained from advertising in magazines.

Complete step by step solution:
Cost of setting up a magazine = Rs.2800
Last month number of copies of magazines printed = 2000 copies

Cost of paper and ink = Rs. \[\dfrac{{80}}{{100}}\] copies
Thus, Cost of paper and ink to print 2000 copies \[ = {\text{ }}200{\text{ }} \times {\text{ }}8{\text{ }} = \] Rs.1600
Cost of printing = Rs. \[\dfrac{{160}}{{100}}\] copies
Thus, Cost of printing 2000 copies \[ = {\text{ }}200{\text{ }} \times {\text{ }}16{\text{ }} = \]Rs.3200
Total Expenditure on 2000 magazine = Rs. \[\left( {1600{\text{ }} + {\text{ }}3200{\text{ }} + {\text{ }}2800} \right)\] = Rs.7600

Selling Price of each magazine = Rs.5
Total number of magazines sold = 1500
Total Selling price of 1500 magazines = \[1500{\text{ }} \times {\text{ }}5\]= Rs.7500

Total Profit on the sale price = \[25\% \]
Let the amount obtained from advertising be x.
Then, total selling price = Rs. \[\left( {7500{\text{ }} + {\text{ }}x} \right)\] (As, we have added x because x is also a profit which we are getting from advertisement).
Expenditure on magazine = Rs.7600
We know that, \[S.P{\text{ }}-{\text{ }}C.P{\text{ }} = {\text{ }}Profit\]
\[\left( {7500{\text{ }} + {\text{ }}x} \right){\text{ }}-{\text{ }}7600{\text{ }} = {\text{ }}25\% {\text{ }}of{\text{ }}7500\]
Solving this equation, for x;
\[7500{\text{ }} + {\text{ }}x{\text{ }}-{\text{ }}7600{\text{ }} = {\text{ }}1875\]
\[ \Rightarrow \]\[x{\text{ }}-{\text{ }}100{\text{ }} = {\text{ }}1875\]
\[\therefore \]\[x{\text{ }} = {\text{ }}1875{\text{ }} + {\text{ }}100{\text{ }} = {\text{ }}Rs.1975\]

Hence, the sum of money obtained from the advertising in magazine is Rs. 1975.

Note:
To solve these types of questions we should see whether the cost price is greater than the selling price than there will be and if the selling price is greater than the cost price then there will be profit. So, we should remember the formulas to solve it.