1. If there are 2,000 newspapers published daily in Texas and they earn a combin

Question

1. If there are 2,000 newspapers published daily in Texas and they earn a combined total of $840 million each year in advertising revenues, what is the average revenue generated by each daily newspaper?

2. The average newspaper gets 65% of its total revenue from advertising; the other 35% comes mostly from subscription sales. Using your answer from above for the average advertising revenue generated per newspaper, if this is 65% of a newspaper’s total revenue then what on average is the total revenue generated by a daily newspaper in Texas?

Explanation / Answer

1. Since 2000 newspapers are published daily in Texas and they earn a combined total of $840,000,000 each year

so average revenue generated by each daily newspaper = $840,000,000/2000 = $420,000 (This is the average revenue generated by each daily newspaper on yearly basis and if you want to get result on daily basis, then divide it by 365 resulting in $420,000/365 = $1,150.68493)

2. Let us consider total revenue of newspaper be x

Since average newspaper gets 65% of its total revenue from advertising which is equal to $420,000

therefore 65% of x = $420,000

65x/100 = $420,000

65x = $420,000*100

x = $420,000*100/65 = $646,153.846 (This is newspaper's total revenue on yearly basis, again for result on daily basis divide it further by 365 resulting in $646,153.846/365 = $1,770.28451)

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