If the price per unit decrease by $20 %$ during 2004 - 2008 and cost per unit increase by $20 %$ during 2009 - 2014, then during how many number of years there is loss?

3 years

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4 years

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5 years

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7 years

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None of these

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Solution

The correct option is C 5 years
$\begin{matrix} Y e a r & N e w r e v e n u e & T o t a l c o s t = O l d r e v e n u e - P r o f i t 2004 & 80 % o f ‘ 700 = 560 & 700 2005 & 80 % o f 1400 = 1120 & 1300 2006 & 80 % o f 1200 = 960 & 900 2007 & 80 % o f 900 = 720 & 750 2008 & 80 % o f 1100 = 880 & 1100 2009 & 400 & 120 % o f 250 = 300 2010 & 200 & 120 % o f 100 = 120 2011 & 700 & 120 % o f 500 = 600 2012 & 600 & 120 % o f 600 = 720 2013 & 800 & 120 % o f 400 = 480 2014 & 900 & 120 % o f 600 = 720 \end{matrix}$
In a year when total cost is more than new revenue then in that year there is loss.
These years are 2004, 2005, 2006, 2007 and 2008
So, there are total 5 yrs.

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If the price per unit decrease by 20% during 2004 - 2008 and cost per unit increase by 20% during 2009 - 2014, then during how many number of years there is loss?

If the price per unit decrease by $20 %$ during 2004 - 2008 and cost per unit increase by $20 %$ during 2009 - 2014, then during how many number of years there is loss?