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A manufacturer of detergent cakes increased the price of his product as a result of which there was a decrease of 20% in its sales. If the sales turnover increases by 20% due to this change what was the percentage increase in the price?
  • a)
    20%
  • b)
    36%
  • c)
    40%
  • d)
    50%
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
A manufacturer of detergent cakes increased the price of his product a...
Let original price = Rs 100 No. of Units gold =100 Turn-over = Rs 10000 Now, No. of Units sold = 80 Turn-over = Rs 12000
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Most Upvoted Answer
A manufacturer of detergent cakes increased the price of his product a...
Increase in price and decrease in sales

Let's assume the original price of the detergent cake is P and the original sales turnover is T.

According to the question, there was a decrease of 20% in the sales turnover when the price increased.

So, the new sales turnover is (1 - 0.2)T = 0.8T.

Increase in sales turnover

Now, it is given that the sales turnover increases by 20% due to this change in price.

So, the new sales turnover is (1 + 0.2)(0.8T) = 0.96T.

Percentage increase in price

We need to find the percentage increase in the price of the detergent cake.

Let's assume the new price of the detergent cake is Q.

Since the sales turnover is directly proportional to the price of the product, we can set up the following equation:

(P/Q) = (T/0.96T)

Simplifying the equation, we get:

P/Q = 1/0.96

Cross multiplying, we get:

P = Q/0.96

Now, to find the percentage increase in price, we can use the formula:

Percentage increase = (New price - Original price) / Original price * 100

Substituting the values, we get:

Percentage increase = (Q/0.96 - P)/P * 100

Percentage increase = (Q/0.96 - Q/0.96)/Q/0.96 * 100

Percentage increase = (0.04Q)/(Q/0.96) * 100

Simplifying further, we get:

Percentage increase = 0.04/0.96 * 100

Percentage increase = 4/96 * 100

Percentage increase = 4.1667%

Since the answer options are in percentage form without decimals, we can round off the percentage increase to the nearest whole number.

Hence, the percentage increase in the price of the detergent cake is 4%.
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A manufacturer of detergent cakes increased the price of his product as a result of which there was a decrease of 20% in its sales. If the sales turnover increases by 20% due to this change what was the percentage increase in the price?a)20%b)36%c)40%d)50%Correct answer is option 'D'. Can you explain this answer?
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A manufacturer of detergent cakes increased the price of his product as a result of which there was a decrease of 20% in its sales. If the sales turnover increases by 20% due to this change what was the percentage increase in the price?a)20%b)36%c)40%d)50%Correct answer is option 'D'. Can you explain this answer? for Quant 2024 is part of Quant preparation. The Question and answers have been prepared according to the Quant exam syllabus. Information about A manufacturer of detergent cakes increased the price of his product as a result of which there was a decrease of 20% in its sales. If the sales turnover increases by 20% due to this change what was the percentage increase in the price?a)20%b)36%c)40%d)50%Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Quant 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A manufacturer of detergent cakes increased the price of his product as a result of which there was a decrease of 20% in its sales. If the sales turnover increases by 20% due to this change what was the percentage increase in the price?a)20%b)36%c)40%d)50%Correct answer is option 'D'. Can you explain this answer?.
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