Cominos, a pizza manufacturing company, sells 1 lakh pizzas in a month. The cost of making one pizza is Rs. 500 and the company invests 25% of the manufacturing cost in advertisement. The cost of delivering pizzas is borne by the company and is approximately 30% of the manufacturing cost. At what price should the pizzas be sold in order to gain 10% overall profit?
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Answer:
Hey Mate,
Given Data,
Making cost of 1 Pizza = ₹ 500
Advertisement Cost = 25%
Delivering Cost = 30%
Making Cost of 1 lakh pizza
=> 500 × 100000
=> ₹ 5,00,00,000
Advertisement Cost
=> 50000000 × (25/ 100)
=> ₹ 1,25,00,000
Delivering Cost of 1 Lakh Pizza
=> 50000000 × (30/ 100)
=> ₹ 15000000
The Total cost for making 1 Lakh Pizza
=> 50000000 + 12500000 + 15000000
=> ₹7,75,00,000
Selling price of 1 Lakh Pizza @ 10% Profit
=> 77500000 × (110/ 100)
=> ₹ 8,52,50,000
Selling price of 1 Pizza
=> 85250000/ 100000
=> ₹ 852.50
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