The price of an item was reduced by 20%. If the number of items sold is increased by 40% what was the effect on the sales(in %)? |
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a) |
12% increase |
b) |
12% decrease |
c) |
40% decrease |
d) |
60% increase |
The price of an item was reduced by 20%. If the number of items sold is increased by 40% what was the effect on the sales(in %)? |
|||||||
a) |
12% increase |
b) |
12% decrease |
c) |
40% decrease |
d) |
60% increase |
Let the cost price of 1 item be
and number of items sold be
Then, cost price of
items=
Now, C.P. of 1 item is reduced by 20%. ∴ New C.P. of one item=Rs.of
=
Also, number of items is increased by 40%. ∴ Number of new items sole = of
∴ New price of items
=Number of items × C.P. of 1 item=
Increase in sale=
∴ Increase % = ==
Alternative Method (I) (Using corollary (1) of T-1):
∴ Required % of effect=
Alternative Method (II):
Price of commodity decreased by 20%
Number of commodity increased by 40%
Therefore new sales in rupees=((100-20)%×(100+40)%) of the original
=(80%×140%) of the original
=
=112% of the original⇒Sales increased by =(112-100)%=12%