Question

In a cinema hall, the charge per person is Rs. $200$. On the first day, only $60\%$ of the seats were filled. The owner decided to reduce the price by $20\%$ and there was in increase of $50\%$ in the number of spectators on the next day. The percentage increase in the revenue on the second day was.

• A. $50$
• B. $40$
• C. $30$
• D. $20$

Answer 1

The correct option is D $20$

Let $x$ be the total number of seats available in the cinema hall.

The revenue of the hall on the first day $=200\times \frac{60x}{100}=120x$

On the second day, the price was reduced by $20\%$ and thus the new price becomes $200\times 0.8=160$ Rs.

Since the number of spectators increased by $50\%$, their number equals $\frac{60x}{100}\times 1.5=\frac{90x}{100}$

Revenue on the second day $=160\times \frac{90x}{100}=144x$

Percentage increase in revenue $=\frac{144x-120x}{120x}\times 100=\frac{1}{5}\times 100=20\%$