Question

In order to maximize his gain, a park owner decides to reduce the price of tickets by 20% and as a result of this, the sales of tickets increase by 40%. If, as a result of these changes, he is able to increase his weekly collection by Rs. 168000, find his monthly collection.

• A. 60 Lakhs
• B. 67.2 Lakhs
• C. 7.2 Lakhs
• D. 50.4 Lakhs

Answer 1

The correct option is B 67.2 Lakhs

Let the initial price of a ticket be x and the number of tickets sold be y
Then, the collection used to be = xy
New collection$=0.8x\times 1.4y=1.12xy$
There is a 12% growth in collection.
Collection growth per day $=\frac{168000}{7}=24000$
So, daily collection $=\frac{24000}{12}\times 112=224000$
$\Rightarrow$ Monthly collection$=224000\times 30=67.2$ Lakhs