Question

40% revenue of a company comes from people living in rural areas while 60% 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?

Answer 1

Answer:

Revenue:

Rural areas=40%

Urban areas-60%

After increasing

Rural = 40x110/100 = 44

Urban=60x120/100 = 72

Total = 116%

overall increase =116-100=16%

Answer 2

Revenue of a company comes from people living in rural areas = 40%

The company increases its fee by 10% for the people living in rural areas.

After increasing the fees Rural revenue will be= 40 x $\frac{110}{100}$ = 44

Revenue of a company comes from people living in urban areas  =60%

After increasing the fees urban revenue will be =60 ×$\frac{120}{100}$ = 72

∴ Total revenue will be = 44 + 72 = 116

Total = 116%

the percentage increase in the overall revenue of the company will be

=116-100

=16%

Ans :- The percentage increase in the overall revenue of the company will be 16%.