Multiple choice

A magazine distributor made 5500 copies of the May issue of a magazine at a cost of Rs. 5,50,000. He gave 500 copies for free to some libraries. He also allowed a 25% discount on the market price of the magazine and gave one extra copy free with every 49 copies bought at a time. In this manner, he was able to sell all the 5500 copies that were produced. If the market price of a copy was Rs. 200, then what was his gain or loss percent for the May issue of the magazine?

  1. 25% gain

  2. 33.6% gain

  3. 40% loss

  4. 26.8% loss

  5. 50% loss
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Total cost = 550,000. 500 copies free, 5000 sold. With 1 free per 49 bought, 5000 copies sold means 4900 paid for and 100 free. Total copies distributed = 500 (libraries) + 4900 (paid) + 100 (bonus) = 5500. Revenue = 4900 * (200 * 0.75) = 4900 * 150 = 735,000. Gain = 735,000 - 550,000 = 185,000. Gain % = (185,000 / 550,000) * 100 = 33.63%.

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