Question

When the price of a toy increased by 20% the number of toys sold was decreased by 15%. The effect on the sales of the shop is :

• A. $4\%$ increase
• B. $4\%$ decrease
• C. $2\%$ increase
• D. $2\%$ decrease

Answer 1

The correct option is C $2\%$ increase

Let original cost of each toy be $100$ Rs.
And let number of toys originally sold be $100$
After increasing the rate by $20$%
New cost = $100+(100\times \frac{20}{100})=120$ Rs.
Number of toys sold $=100-15=85$
Original sale proceeds = $100\times 100=10000$
New sale proceeds = $120\times 85=10200$
Increase percentage $=\frac{(10200-10000)}{10000}\times 100$
$\Rightarrow 2$ % increase
Hence, option 'C' is correct.