Magazine launch arithmetic — 10,000 copies printed for ₹ 50,000 (cost ₹ 5 per copy). 20% are distributed free as specimen copies. Of the remaining stock, 25% are sold at 25% discount on the ₹ 12 printed cover price and the rest at 16.66% discount (i.e., one-sixth off). With no ad revenue, what is the overall percentage gain or loss on the first month’s issue?

Introduction / Context:
This multi-step selling problem mixes free distribution with tiered discounts relative to a fixed cover price. Since the printing cost is fully borne for all copies (including free copies), revenue must be compared against total printing cost to find the overall result.

Given Data / Assumptions:

• Total copies = 10,000; total printing outlay = ₹ 50,000.
• Cover price (printed) = ₹ 12 per copy.
• 20% free ⇒ 2,000 copies with zero revenue.
• From remaining 8,000: 25% at 25% discount; the rest at 16.66% discount.

Concept / Approach:
Compute revenue tier-wise. At 25% discount, SP = 0.75 * 12 = ₹ 9. At 16.66% discount (one-sixth), SP = 12 * (5/6) = ₹ 10. Sum revenues and compare with the total printing cost of ₹ 50,000 to get the profit% or loss% on the entire print run.

Step-by-Step Solution:

Verification / Alternative check:
Average selling price per printed copy = 78,000 / 10,000 = ₹ 7.80 vs cost per copy ₹ 5 ⇒ margin ₹ 2.80 per copy ⇒ 56% of ₹ 5.

Why Other Options Are Wrong:
27% loss contradicts positive revenue surplus; 16.66% and 38% profit are not supported by the arithmetic; 12% is far too low.

Common Pitfalls:
Ignoring the cost of free copies, or applying discount percentages to cost instead of to the cover price.

Final Answer:
56% profit