Question

if the price of machine is reduced by 20% and the number of machines sold is increased by 40% ,what will be the effect on the revenue​

Answer 1

Answer:

There will be an increase in revenue by 26%

Step-by-step explanation:

Let original price=p and no. of machines sold=n

∴ old revenue= p×n

new price=$\frac{90p}{100}$

new no. of machines sold=$\frac{140n}{100}$

∴new revenue = $\frac{90p}{100}$×$\frac{140n}{100}$

                        = $\frac{126.p.n}{100}$

% increase = $\frac{\frac{126.p.n}{100}-p.n}{p.n}$ ×100

                   = $\frac{26.p.n}{100.p.n}$ ×100

                   = 26%