Question : The pie chart below gives the expenses under different heads that a publisher of books has to incur towards the cost of selling a book. All figures are given as percentages of the total expenditure incurred.
If the retailer's margin is INR 3,55,500, which of the options given below provides correct information?
Option 1: The difference between the retailer's margin and the cost of editing is INR 2,33,050.
Option 2: The sum of the cost incurred towards payment of royalty and the cost of editing is INR 2,76,500.
Option 3: The difference between the cost of promotion and the cost of editing is INR 80,500.
Option 4: The sum of the cost of printing and the cost of editing is INR 3,15,000.
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Correct Answer: The sum of the cost incurred towards payment of royalty and the cost of editing is INR 2,76,500.
Solution :
Given: Retailer's margin = 22.5%, Royalty = 10% and Editing = 7.5%
The retailer's margin is INR 3,55,500.
Now 22.5% is equivalent to INR 3,55,500.
So, (10 + 7.5) = 17.5% is equivalent to $\frac{355500×17.5}{22.5}$ = INR 2,76,500
Hence, the correct answer is "The sum of the cost incurred towards payment of royalty and the cost of editing is INR 2,76,500".
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