Question

A trader dealing in pressure cooker reduced the price by 20% as a result of which his sale went up by 80%. What was the net effect on his sales income?
(A)44% decrease
(B)44% increase
(C)66% increase
(D)66% decrease

Answer 1

Let
Original Price = 100/unit
Original Number sold = 100 units
Total Revenue = (100)(100) = 10,000

New Price = 100 - (20%) of (100) = 80/unit
New Number sold = 100+(80%) of (100) = 180 units
Total Revenue = (80)(180) = 14,400

Percent Change = $\frac{(new-old)}{\left(old\right)}\times 100\%=\frac{(14,400-10,000)}{10,000}\times 100\%$

$=\frac{4,400}{10,000}\times 100\%$

$=\frac{44}{100}\times 100\%$

= 44% increase in revenue