If the price per unit decrease by 20% during 2000 - 2004 and cost per unit increase by 20% during 2005 - 2010, then the cumulative profit for the entire period 2000 - 2010 decrease by
A
Rs. 1650
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B
Rs. 1550
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C
Rs. 1300
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D
Rs. 1250
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E
Data inadequate
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Solution
The correct option is B Rs. 1550 Total decrease in revenues =20% of (700 + 400 + 1200 + 900 + 1100) = 1060 Total increase in cost =20% of (250 + 100 + 500 + 600 + 400 + 600) = 490 Decrease in cumulative profit = Total decrease in revenues + Total increase in cost = 1060 + 490 = Rs. 1550