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The price of petrol increases by 20% and the sale decreases by 10%. What is the net revenue change in percent?
- a)8% decrease
- b)8% increase
- c)10% decrease
- d)10% increase
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
The price of petrol increases by 20% and the sale decreases by 10%. W...
Given:
- Price of petrol increases by 20%.
- Sale decreases by 10%.
To find:
The net revenue change in percent.
Solution:
Let's assume the initial price of petrol is 100 units and the initial sale is 100 units.
Step 1: Calculate the new price of petrol after a 20% increase:
- Price of petrol increases by 20%.
- 20% of 100 units = (20/100) * 100 = 20 units.
- The new price of petrol = 100 units + 20 units = 120 units.
Step 2: Calculate the new sale after a 10% decrease:
- Sale decreases by 10%.
- 10% of 100 units = (10/100) * 100 = 10 units.
- The new sale = 100 units - 10 units = 90 units.
Step 3: Calculate the net revenue:
- Net revenue = Price of petrol * Sale.
- Initial net revenue = 100 units * 100 units = 10000 units.
- New net revenue = 120 units * 90 units = 10800 units.
Step 4: Calculate the net revenue change in percent:
- Net revenue change = (New net revenue - Initial net revenue) / Initial net revenue * 100%.
- Net revenue change = (10800 units - 10000 units) / 10000 units * 100%.
- Net revenue change = 800 units / 10000 units * 100%.
- Net revenue change = 8%.
Therefore, the net revenue change is an 8% increase (option B).
- Price of petrol increases by 20%.
- Sale decreases by 10%.
To find:
The net revenue change in percent.
Solution:
Let's assume the initial price of petrol is 100 units and the initial sale is 100 units.
Step 1: Calculate the new price of petrol after a 20% increase:
- Price of petrol increases by 20%.
- 20% of 100 units = (20/100) * 100 = 20 units.
- The new price of petrol = 100 units + 20 units = 120 units.
Step 2: Calculate the new sale after a 10% decrease:
- Sale decreases by 10%.
- 10% of 100 units = (10/100) * 100 = 10 units.
- The new sale = 100 units - 10 units = 90 units.
Step 3: Calculate the net revenue:
- Net revenue = Price of petrol * Sale.
- Initial net revenue = 100 units * 100 units = 10000 units.
- New net revenue = 120 units * 90 units = 10800 units.
Step 4: Calculate the net revenue change in percent:
- Net revenue change = (New net revenue - Initial net revenue) / Initial net revenue * 100%.
- Net revenue change = (10800 units - 10000 units) / 10000 units * 100%.
- Net revenue change = 800 units / 10000 units * 100%.
- Net revenue change = 8%.
Therefore, the net revenue change is an 8% increase (option B).
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Community Answer
The price of petrol increases by 20% and the sale decreases by 10%. W...
Let original price = P
Let original sales = V
Hence, original revenue = PV
New price = 1.20P
New sales = 0.90V
New revenue = 1.20P × 0.90V = 1.08PV
Change in revenue = New revenue - Original revenue = 1.08PV - PV = 0.08PV
Hence, percentage change in revenue
Correct option is (2).
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