Question

The number of seats in an auditorium is increased by 25%. The price of a ticket is also increased by 12%. Then the increase in revenue collection will be​

Answer 1

Answer:

The number of seats in the cinema hall is increased by 25% and the price per ticket decreases by 10%.

Let the number of seats be x and the price of each ticket be ₹y.

Total revenue collected = ₹xy

Number of seats are increased by 25% = 1.25x seats

Price of each ticket is decreased by 10% = 0.90y

Total revenue collected = 1.25x × 0.90y = ₹1.125xy

Increased revenue = ₹1.125xy - ₹xy = ₹0.125xy

Percentage increase = 0.125 xy/xy × 100 = 12.5%.

The revenue increased by 12.5%

Answer : the effect on overall sales will be that revenue will increase by 12.5%

Step-by-step explanation:

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