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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 profit of 10% on the cost?

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 profit of 10% on the cost? Correct Answer Rs. 726

Total cost = type + Printing + paper, ink
= 1000 + 120 × 9 + 540 = 2620
Net sum to be recovered = Rs. 2882
Total magazine sold 784 for = 784 × 2.75 = 2156
Sum obtained from advertisement = 2882 - 2156 = Rs. 726

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