Algebra Play | FIO

Question 17

I run a small dosa cart and my expenses are as follows:

  • Rent for the dosa cart is ₹5000 per day.
  • The cost of making one dosa (including all the ingredients and fuel) is ₹10.

(i) If I can sell 100 dosas a day, what should be the selling price of my dosa to make a profit of ₹2000?

(ii) If my customers are willing to pay only ₹50 for a dosa, how many dosas should I aim to sell in a day to make a profit of ₹2000?

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Solution

We will use the idea that Profit is the money earned from sales (Total Revenue) minus the total money spent (Total Cost).

Step 1 — Calculate Total Cost

First, let us find the total cost for making dosas. The total cost has two parts: fixed cost and variable cost. Fixed cost is the rent, which is constant every day. Variable cost depends on how many dosas we make.

Daily fixed cost (rent) = ₹5000 Cost to make one dosa = ₹10

(i) If we sell 100 dosas a day: Total variable cost for 100 dosas = Cost per dosa ×\times Number of dosas

=10×100= ₹10 \times 100

=1000= ₹1000

Total cost for the day = Daily fixed cost + Total variable cost

=5000+1000= ₹5000 + ₹1000

6000\boxed{₹6000}

This is the total money spent in a day.

Step 2 — Find Selling Price per Dosa (Part i)

We want to make a profit of ₹2000. Profit is calculated as Total Revenue minus Total Cost. Total Revenue is the total money earned from selling dosas.

Let SS be the selling price of one dosa. Total Revenue = S×S \times Number of dosas

We know that: Profit = Total Revenue - Total Cost So, Total Revenue = Profit + Total Cost

=2000+6000= ₹2000 + ₹6000

=8000= ₹8000

Now, we can find the selling price of one dosa. Selling price per dosa = Total Revenue ÷\div Number of dosas

=8000÷100= ₹8000 \div 100

80\boxed{₹80}

Diagram 1

Step 3 — Find Number of Dosas to Sell (Part ii)

Now, let us consider the second situation. Customers are willing to pay ₹50 for a dosa. We still want to make a profit of ₹2000.

Let NN be the number of dosas we need to sell. Total Revenue = Selling price per dosa ×\times Number of dosas

=50×N= ₹50 \times N

=50N= 50N

Total Cost = Daily fixed cost + (Cost per dosa ×\times Number of dosas)

=5000+(10×N)= ₹5000 + (₹10 \times N)

=5000+10N= 5000 + 10N

We know that Profit = Total Revenue - Total Cost. We want the profit to be ₹2000.

2000=50N(5000+10N)₹2000 = 50N - (5000 + 10N)

2000=50N500010N2000 = 50N - 5000 - 10N

2000=40N50002000 = 40N - 5000

We need to solve this equation for NN. Add 5000 to both sides of the equation.

2000+5000=40N2000 + 5000 = 40N

7000=40N7000 = 40N

Now, divide both sides by 40 to find NN.

N=7000÷40N = 7000 \div 40

N=700÷4N = 700 \div 4

175 dosas\boxed{175 \text{ dosas}}

Answer

(i) The selling price of my dosa should be ₹80. (ii) I should aim to sell 175 dosas in a day.

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Q17

I run a small dosa cart and my expenses are as follows:

  • Rent for the dosa cart is ₹5000 per day.
  • The cost of making one dosa (including all the ingredients and fuel) is ₹10.

(i) If I can sell 100 dosas a day, what should be the selling price of my dosa to make a profit of ₹2000?

(ii) If my customers are willing to pay only ₹50 for a dosa, how many dosas should I aim to sell in a day to make a profit of ₹2000?

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“Do you want to make money?”, asked the genie. Karim nodded dumbly in bewilderment. The genie continued, “Do you see the banyan tree over there? All you have to do is go around it once. The money in your pocket will double”.

Karim immediately started towards the tree, only to be stopped by the genie. “One moment!”, said the genie. “Since I am bringing you great riches, you should share some of your gains with me. You must give me 8 coins each time you go around the tree.”

Thinking that was a trifling amount, Karim readily agreed.

He went around the tree once. Just as the genie had said, the number of coins in his pocket doubled! He gave 8 coins to the genie. He made another round. Again the number of coins doubled. He gave 8 more coins to the genie. He went around the tree for the third time. The number of coins doubled again, but to his horror, he was left with only 8 coins, exactly the number of coins he owed the genie!

As Karim began to wonder how the genie tricked him, the genie let out a loud laugh and disappeared.

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(ii) For what cost per round should Karim agree to the deal, if he wants to increase the number of coins he has?

(iii) Through its magical powers, the genie knows the number of coins that Karim has. How should the genie set the cost per round so that it gets all of Karim's coins?

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