Question

The selling price of a certain commodity was reduced by 25%. As a result of it, the sales increas ed by 30%. What is the effect of it on cash collected by daily sales ? a) 5% increase b) 5% decrease c) 2.5% increase d) 2.5% decrease

Answer 1

my opinion is option c) 2.5% increase

Answer 2

Answer: d) 2.5% decrease

Step-by-step explanation:

Commodity was Reduced by 25% = 75

Sales was increased by 30% = 130

75 X 130

Overall effect = —–––——— = 97.5

100

Therfore, 2.5% decreased