A newspaper costs 11 to print on a daily basis. Its sale price (printed) is 73. Thenewspaper gives a sales incentive of 40% on the printed price, to the newspaper vendorsThe newspaper makes up for the loss through advertisements, which are charged on thebasis of per column centimetre rates. The advertisement rates of the newspaper are 7300per cc (column centimetre). It has to give an incentive of 15% on the advertising bill to theadvertising agency. If the newspaper has a circulation of 12,000 copies, what is theapproximate minimum advertising booking required if the newspaper has to break evenon a particular day. (Assume there is no wastage)
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The newspaper gives a sales incentive of 40% on the printed price , to the ... which are charged on the basis of per column centimetre rates
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Answer:
435 cc
Step-by-step explanation:
Each paper is sold for Rs 3 and out of this 40% deals impetus so 60% is recuperated out of Rs 3 for example Rs 1.8 so 11 - 1.8 is to be recuperated from promotions 9.2 Ads 15% is given to notice.
So 75% is recuperated. for example (0 .75 * 300 =255 ) so least cc for promotion to defeat make back the initial investment point ought to be more noteworthy than (9.2*12000)/255.
= 435cc (approx.)
Therefore, the approximate minimum advertising booking required if the newspaper has a break-even on a particular day is 435 cc.
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