Question

when the price of fans was reduced by 20% the number of fans sold increased by 40% .what was the effect on the sales rupees?

Answer 1

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Answer 2

The sales were increased by 12%.

Let the price of each fan be Rs x and the no. of fans sold be y

So, the total sale obtained by selling y no. of Rs x fans is

Sale = Rs x × y  = Rs xy.

Now,

when the fan's price was reduced by 20%, its price becomes (100-20)% of Rs x

= 80% of Rs x = Rs 0.80x

Also, no. of fans selling increased by 40%, so the no. of fans sold is (100+40)% of y

= 140% of y = 1.4y

Thus, now the sales become = Rs (0.80x × 1.4y) = Rs 1.12xy

∴ Increase in sales = Rs (1.12xy - xy) = Rs 0.12 xy

And percentage increase in sale = [(0.12xy / xy) × 100]% = 12%

So there is 12% increase in sales.