If there is a decrease of 15% in price of a washing machine and sale increases by 20% then what will be effect on income
Answers
Given : If there is a decrease of 15% in price of a washing machine and sale increases by 20%.
To find : What will be effect on income.
solution : Let's assume 100 washing machines are sold when price of each washing machine is 100.
total income = 100 × 100 = 10,000
now there is a decease of 15% in price of a washing machine.
so, new price of washing machine = 100 - 15% of 100 = 100 - 15 = 85
sale increases by 20% . so, new sale = 100 + 20% of 100 = 100 + 20 = 120
new total income = 85 × 120 = 10,200
total income is increased by 200.
so, % increase of income = (10,200 - 10,000)/10,000 × 100
= 200/10000 × 100
= 2 %
Therefore , income increases by 2%.
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