Question

A telecom company slashed the call charges by 10%. It hoped that by this step there would be 20% increase in business. What is the net gain or loss to the company?

Answer 1

Let the call charge be =x
$x + x \times 10 \div 100 = x + x \times 20 \div 100$

Answer 2

Answer:

There is net gain of 33.33% of telecom company.

Concept:

Net profit: If the credit side, which represents income, exceeds the debit side, which represents expenses, a corporation is said to have made a net profit. The determined sum serves as the balancing figure to be applied to the debit side of the account as part of account balancing. Net profit is recorded on the liabilities side of a balance sheet and moved to the capital account.

Net loss: A corporation is considered to have had a net loss if the credit side of its income statement shows more income than the debit side, which represents expenses. As part of balancing the account, the determined amount is the balancing figure to be placed on the credit side.

Given:

Company slashed by a call = 10%

Increase in business = 20%

Find:

We have to find the net gain or net loss.

Solution:

Let the total percentage of the company = 100%

Increase in business = 20%

Total increase in business = (100+20)% = 120%

There is 10% slashed = (100-10)% = 90%

Total percentage = $\frac{120}{90} * 100$ = 133.33%

It has been observed that there is gain = 33.33%

So, the net gain is 33.33%.

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