Question

By reducing the price of an article by 30%, its sale increases by 20%. What is the net effect
on the revenue receipts?
A) 15% increase B) 15% decrease C) 16% increase D) 16% decrease​

Answer 1

Answer:

the net effect on the revenue receipt is (B)

Answer 2

The revenue receipt has decreased by 16%.

Step-by-step explanation:

If the sales of the price is reduced by 30%

Increase in sales = 20%

Let us assume that the price of article is Rs.100

30% of Rs.100 = Rs.30

If Rs.30 is subtracted from 100.

We will have Rs.(100-30) =Rs.70

Increase is 20 ℅ of 70 = Rs.14

Now we add 14 to 70 so we have 84.

So, 100-84 = 16%

Hence,the revenue receipt has decreased by 16%.