An author recevies royalty at 7.50% of the selling price of the first 5000 books 10% of the selling price on the next 5000 books 12.50% of the selling price on the rest of the sales. How much will he recieve if 15000 are sold at RS 80 each? royalty means=fee earned by a writer of books from their sale
Answers
Number of books sold = 15000 (Given)
Price of a book = Rs 80 (Given)
.
First 5000 books:
Selling Price = 5000 x 80 = Rs 400 000
Royalty = 7.5% x 400 000 = 0.075 x 400 000 = Rs 30 000
.
Books remaining = 15000 - 5000 = 10000
.
Next 5000 books:
Selling Price = 5000 x 80 = Rs 400 000
Royalty = 10% x 400 000 = 0.1 x 400 000 = Rs 40 000
.
Remaining books = 10 000 - 5000 = 5000
.
Remaining 5000 books:
Selling Price = 5000 x 80 = Rs 400 000
Royalty = 12.5% x 400 000 = 0.125 x 400 000 = Rs 50 000
.
Total Royalty = 30 000 + 40 000 + 50 000 = Rs 120 000
.
Answer: The royalty fee that the author received is Rs 120 000
Number of books=5000
Cost of 1 book=Rs.80
Royalty for the selling price for the first 5000 books=7.5%
Royalty for the selling price on next 5000 books=10%
Royalty for the selling price for rest of the sales=12.5%
Cost of 5000 books
=5000×80=Rs.400000
Royalty at 7.5% = 400000×7.5/100 = Rs.30000
Royalty at 10% = 400000×10/100 = Rs.40000
Royalty at 12.5% = 400000×12.5/100 = Rs.50000
Therefore,money received by the author at selling 15000 copies at Rs.80 each = 30000+40000+50000 = Rs.120000(Ans)