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27 Feb 2018, 23:52
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E
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If prices are reduced 25% and sales increase 20%, what is the net effect on gross receipts?
(A) They increase by 5%.
(B) They decrease by 5%.
(C) They remain the same.
(D) They increase by 10%.
(E) They decrease by 10%.
(A) They increase by 5%.
(B) They decrease by 5%.
(C) They remain the same.
(D) They increase by 10%.
(E) They decrease by 10%.
27 Feb 2018, 23:58
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Let the price be $100
And sales be 100 units
New Price = $75
New sales = 120
Therefore
{(75*120)-(100*100)}/(100*100)
=- 10%
So answer should be E .
Decrease by 10%
To win the Game , Be in the Game
Please give Kudos for right Answers
And sales be 100 units
New Price = $75
New sales = 120
Therefore
{(75*120)-(100*100)}/(100*100)
=- 10%
So answer should be E .
Decrease by 10%
To win the Game , Be in the Game
Please give Kudos for right Answers
28 Feb 2018, 16:03
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Multiplier method.
25% discount = 0.75 multiplier
20% increase = 1.2 multiplier
1.2 * 0.75 = 0.90 [If the product of two multipliers is less than 1, it is a decrease]
1-0.90 = 10%
25% discount = 0.75 multiplier
20% increase = 1.2 multiplier
1.2 * 0.75 = 0.90 [If the product of two multipliers is less than 1, it is a decrease]
1-0.90 = 10%
