The number of seats in a cinema hall is increased by 25%. The price of ticket is also increased by 20%. What is the effect on revenue collection?
a)
150% decrease
b)
100% increase
c)
75% decrease
d)
50% increase
The number of seats in a cinema hall is increased by 25%. The price of ticket is also increased by 20%. What is the effect on revenue collection?
a)
150% decrease
b)
100% increase
c)
75% decrease
d)
50% increase
Question ID - 55730 | SaraNextGen Top Answer
The number of seats in a cinema hall is increased by 25%. The price of ticket is also increased by 20%. What is the effect on revenue collection?
a)
150% decrease
b)
100% increase
c)
75% decrease
d)
50% increase
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The number of seats in a cinema hall is increased by 25%. The price of ticket is also increased by 20%. What is the effect on revenue collection? |
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|
a) |
150% decrease |
b) |
100% increase |
c) |
75% decrease |
d) |
50% increase |
1 Answer
127 votes
Answer Key / Explanation : (d) -
We have, 
∴ Effect on revenue collection = 
increased)
Alternative Method:
Revenue collection = Number of seats× cost per seat = 125%120% of original revenue
=
of original = 150% of original
∴ Effect on revenue=150-100=50% (increased)
127 votes
Answer Link
127