Question

By reducing the price of an article by 30 percent it's sale and increase by 20 percent. What is the net effect on the revenue receipts?

Answer 1

Given that : Price = 30% = 3/10

Sale = 20 % = 2/10

Let, Main Price = 10

Then, decreased price = 10-3 = 7 and Increased sale = 10+2 = 12

Now, effect on the revenue = 10×10-12×7 = 100-84 = 16

Then, in percentage effect on the revenue :

$\frac{16}{100} \times 100 = 16$

So, the effect is 16% on the revenue.

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