the price of maruti car rises by 30% while the sales come down by 20% what is the percentage change in revenue.
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Answered by
53
Let initial price of Maruti Car be Rs. 100.
As price increases 30%, price of car will become, (100 +30% of 100) = Rs. 130.
Due to increase in price, sales is down by 20%.
It means, it is going make 20% less revenue as expected after increment of price.
So, New revenue = (130 - 20% of 130) = Rs. 104.
The initial revenue was Rs. 100 which becomes Rs. 104 at the end.
It means there is 4% increment in the total revenue.
Mind Calculation Method:
100==30%↑(price effect)==>130==20%↓(sales effects)==>104.
Hence, 4% rises.☺️✌️
As price increases 30%, price of car will become, (100 +30% of 100) = Rs. 130.
Due to increase in price, sales is down by 20%.
It means, it is going make 20% less revenue as expected after increment of price.
So, New revenue = (130 - 20% of 130) = Rs. 104.
The initial revenue was Rs. 100 which becomes Rs. 104 at the end.
It means there is 4% increment in the total revenue.
Mind Calculation Method:
100==30%↑(price effect)==>130==20%↓(sales effects)==>104.
Hence, 4% rises.☺️✌️
Answered by
4
Answer:
4% rises
Step-by-step explanation:
Let initial price of Maruti Car be Rs. 100.
As price increases 30%, price of car will become, (100 +30% of 100) = Rs. 130.
Due to increase in price, sales is down by 20%.
It means, it is going make 20% less revenue as expected after increment of price.
So, New revenue = (130 - 20% of 130) = Rs. 104.
The initial revenue was Rs. 100 which becomes Rs. 104 at the end.
It means there is 4% increment in the total revenue.
Mind Calculation Method:
100==30%↑(price effect)==>130==20%↓(sales effects)==>104.
Hence, 4% rises.☺️✌️
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