Question

8. The price of an article increased by 40%, as a result ito
sale reduce by 20% . What will be the effect on
revenue ? ​

Answer 1

Answer:

let fans price =x and fan sale =y

Revenue = xy

After 20% price reduction , rate =80x/100

40% increased sale =140y/100

New revenue =0.8x*1.4y = 1.12xy

Profit in revenue =1.12xy-xy

Profit =0.12xy

Profit % = (0.12xy/xy) *100 = 12%

Ans : profit % = 12%