# When the price of article was reduced by 20% its sales increased by 80% What is the net effect on the revenue?

Let the Price of an article is 100 RS and initially 100 Articles were sold. Therefore total revenue = 100*100=10000 RS. Now , When Price is reduced by 20% and sale is increased by 80% Then Price of an Article will be 80 RS. and Total Articles sold will be 180 Therefore total revenue = 80*180= 14400 RS.

So, Profit% = (4400*100)/10000 = 44%

Pricce = 20% $$\Large =\frac{1}{5}$$sale$$\Large =80\% =\frac{4}{5}$$

Required increase in sale

$$\Large =\frac{11}{25} \times 100=44\%$$

Part of solved Percentage questions and answers : >> Aptitude >> Percentage

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When the price of an article was reduced by 20% its sale increased by [#permalink]

28 May 2015, 10:42

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When the price of an article was reduced by 20% its sale increased by 80%. What was the net effect on the sale?(A) 44% increase(B) 44% decrease (C) 60% increase(D) 66% increase(E) 66% decrease_________________

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Re: When the price of an article was reduced by 20% its sale increased by [#permalink]

28 May 2015, 11:01

The question asks "what was the net effect on the sale?" and tells us "the sale increased by 80%". So the answer is 80%. There's a problem with the wording of the question.The question surely means to ask "what was the effect on the revenue". This is a pure ratio question, so you can just invent numbers if you like - the answer will be the same for any numbers you choose. So you could imagine at first 10 items were sold for $10 each, for$100 revenue. Then after the percent changes, 18 items were sold for $8 each, for$144 revenue, a 44% increase.Or you can use algebra: if n items are sold for $p each, revenue is$np. If we reduce the price by 20%, the new price is 0.8p. If we increase the number sold by 80%, the new number sold is 1.8n. So the new revenue is (0.8p)(1.8n) = 1.44np, which is 1.44 times the old revenue, so is 44% greater. _________________

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Re: When the price of an article was reduced by 20% its sale increased by [#permalink]

04 Apr 2017, 07:02

The answer is ASimply put =(1.8x0.8) - 1 = 1.44 - 1 = 0.44

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Re: When the price of an article was reduced by 20% its sale increased by [#permalink]

05 Apr 2017, 19:14

HI All,This question is poorly-worded, but the intent is to compare the 'before revenue' to the 'after revenue' in terms of percentage change...We're told that decreasing the price of an item by 20% led to an increase of 80% in total number of that item sold. This question can be solved by TESTing VALUES.IF...Original Price = $100/unitOriginal Number sold = 100 unitsTotal Revenue = ($100)(100) = $10,000New Price =$100 - (.20)($100) =$80/unitNew Number sold = 100(1.8) = 180 unitsTotal Revenue = ($80)(180) =$14,400Percent Change = (new - old)/(old) = (14,400 - 10,000)/10,000 = 4,400/10,000 = 44/100 = 44% increase in revenue

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Re: When the price of an article was reduced by 20% its sale increased by [#permalink]

11 Oct 2019, 04:15

S.P reduced to 80 from 100Sell increase by 80% i.e. 1.8 TimesNew sales = 0.8 *1.8 = 1.44

Net effect on sales 44% increase.

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Re: When the price of an article was reduced by 20% its sale increased by [#permalink]

11 Oct 2019, 07:04

balamoon wrote:

When the price of an article was reduced by 20% its sale increased by 80%. What was the net effect on the sale?(A) 44% increase(B) 44% decrease (C) 60% increase(D) 66% increase(E) 66% decrease_________________

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$$-20 + 80 + \frac{(-20)(80)}{100}$$= $$60 - 16$$= 44 % Increase , thus Answer must be (B) _________________

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Re: When the price of an article was reduced by 20% its sale increased by [#permalink]

17 May 2022, 07:24

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Re: When the price of an article was reduced by 20% its sale increased by [#permalink]