30% revenue of a company comes from people living in rural areas while 70% of its revenue comes from people living in urban areas. If the company increases its fee by 10% for the people living in rural areas while 20% for the people living in urban areas, what is the percentage increase in the overall revenue of the company?
Answers
The total increase in the revenue of the company will be 17%.
Let the total revenue of the company be ‘X’.
That means, revenue from rural areas = XR = 0.3X
And revenue from urban areas = XU = 0.7X
Now, 10% increase in fee collection from rural areas will result in the total revenue of the rural areas increasing by 10%. Therefore,
New XR = XR + 0.1 XR
= 1.1 XR
= 0.33X
Similarly, 20% increase in urban fee collection. Therefore,
New XU = XU + 0.2 XU
= 1.2 XU
= 0.84 XU
New Revenue of the company is,
New X = New XR + New XU
= 0.33X + 0.84X
= 1.17X
Therefore, there is 17% increase in the revenue of the company.
Answer:
Explanation:Let the total revenue be 100. Revenue from rural area= 30 Revenue from urban area= 70 after increasing the fees: Revenue from rural area= 1.1×30= 33 Revenue from urban area= 1.1.2×70= 84 New revenue = 84+ 33 = 117 percentage increase = 17%