📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      The cost of an item rose by 20%. Because of this, the

      number of items sold dropped by 10%. What is the overall percentage change in total earnings?
      A 12% decrease Correct Answer Incorrect Answer
      B 8% increase Correct Answer Incorrect Answer
      C 5% increase Correct Answer Incorrect Answer
      D 9% decreased Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      ATQ,

      Let the initial cost per item be Rs. ‘10a’ And initial quantity sold be ‘10b’ So, original revenue = 10a × 10b = Rs. ‘100ab’ New price per item = 10a × 1.2 = Rs. ‘12a’ New quantity sold = 10b × 0.9 = Rs. ‘9b’ New revenue = 12a × 9b = Rs. ‘108ab’ Net change = {(108ab – 100ab)/100ab} × 100 = 8% increase

      Practice Next
      More Profit and loss Questions

      Relevant for Exams:

      ask-question