Question

The cost of setting up the type of a magazine is $Rs.1000$, the cost of running the printing machine is $Rs.120$ per $100$ copies, the cost of paper, ink and so on is $60$ paise per copy. The magazines are sold at $Rs.2.75$ each. $900$ copies are printed, but only $784$ are sold. What is the sum to be obtained from advertisements to give a profit of $10\% $ on the cost?
(a).$Rs.730$
(b).$Rs.720$
(c).$Rs.726$
(d).$Rs.736$

Answer 1

Hint:
Here we will find the total cost associated with the magazine print and the total revenue generated from selling it.

Complete step by step solution:
Total cost for printing $900$ magazines = setting up cost + cost of running the printing machine for $900$ copies + cost of paper, ink and so on for $900$ copies.
Total cost for printing $900$ magazines = $Rs.1000 + Rs.120 \times 9 + Rs.\dfrac{{60}}{{100}} \times 900$
Total cost for printing $900$ magazines = $Rs.2620$
Total selling price obtained by selling $784$ magazines = $Rs.2.75 \times 784 = Rs.2156$
Sum to be obtained from advertisements to give a profit of $10\% $ on the cost = Total cost for printing $900$ magazines – Total selling price obtained by selling $784$ magazines $ + 10\% $ on the cost for printing $900$ magazines.
Sum to be obtained from advertisements to give a profit of $10\% $ on the cost = $Rs.2620 - Rs.2156 + 10\% $of $Rs.2620$
Sum to be obtained from advertisements to give a profit of $10\% $ on the cost = $Rs.464 + Rs.\dfrac{{10}}{{100}} \times 2620$
 Sum to be obtained from advertisements to give a profit of $10\% $ on the cost = $Rs.726$
Hence, option (c) is correct.

Note:
In this kind of problem we start with finding total cost associated in performing a task like print of magazines, then, we find the total selling price obtained. Then, we can find the remaining quantity asked like sum to be obtained from advertisements or total profit generated.