Mathtips

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When the price of a radio was reduced by 20% the quantity sold was increased by 80%. What was the net effect on the sale?

Can you solve this problem?

SOLUTION

Let the price of the radio = $100; and quantity sold =100 ( 100 is a convenient number in percentage problems)

Initially, the revenue = 100*100 =$10000

The current price is 100-(20% of 100) = 100-20 =$80

The current quantity sold is 100+(80% of 100) = 100+80 = 180

The current revenue = 80*180 =$14400

The percentage increase in revenue = (difference/initial revenue)*100 = (4400/10000)*100 = 44%

FASTRAC METHOD

-20+80+(-20*80/100) = 44%

2. A shop keeper sells two radios at $1540 each. On one he gains 10% and on the other he loses 10%. What was the net result of the sale of both radios? (Solution will be published on the next day)

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