Question

3. A publisher printed 30,000 copies of an edition of a book. Each copy of the book cost the publisher 45Gp to produce and it is sold to the public for 76Gp. The publisher agrees to pay the author 10% of the selling price of the first 6000 copies sold, and 12% of the selling price for all copies sold in excess of 6000. Altogether 25,300 copies of the book are sold. Calculate, correct to the pesewa: I) the total amount received by the author

Answer 1

The total amount received by the author is of 221,616Gp.

Explanation:

25,300 copies sold.

For the first 6000, he receives 10% of the selling price of 76 Gp.

For those in excess of 6000, that is, the next 25300 - 6000 = 19300, he receives 12% of the selling price of 76 Gp.

Total amount received by the author:

6000*0.1*76 + 19300*0.12*76 = 221,616

The total amount received by the author is of 221,616Gp.