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 copies 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

The correct option is C Rs 726

The total cost to print 900 copies would be given by:
Cost for setting up the type + cost of running the printing machine + cost of paper/ink etc
$1000+120\times 9+900\times 0.6=1000+1080+540=2620$
A 10% profit on this cost amounts to Rs 262. Hence, the total amount to be recovered is Rs 2882.
Out of this, 784 copies are sold for Rs 2.75 each to recover Rs 2156. The remaining money has to be recovered through advertising. Hence, The money to be recovered through advertising = 2882 - 2156 = Rs 726. Option (c) is correct.