If 200 copies are published and the binding cost on them amounts
Study the following graph carefully to answer the given questions
The following pie-chart shows the percentage distribution of the expenditure incurred in publishing a book. Study the pie-chart and the answer the questions based on it
Question 1: If 200 copies are published and the binding cost on them amounts to Rs. 9,000, then what should be the selling price of one book so that the publisher can earn a minimum profit of 15%?
A. Rs 255
B. Rs 275
C. Rs 300
D. Rs 345
Right Answer is: D
SOLUTION
Total Binding price = Rs. 9,000
Binding price of one book = (9000/200) = Rs 45
Binding cost = 15%
Total cost = 45 × (100/15) = Rs. 300
Profit = 15%
Selling price = 300 + (15/100) × 300 = Rs. 345