hadiyahboukhari wrote:
chandan1988 wrote:
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%
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please tell me why we subtracted (75*120) from (100*100).. is this some kinda rule.. cant we subtract (100*100) from (75*120)
Hi
You can subtract anything from anything, but it should be clear in your mind what does the end result mean.
1. If you do the way it is done in the example then you must know that the end result means that it shows the increase/decrease of 2nd case with respect to first one.
2. If you do it the opposite then you must know that it shows increase/decrease of 1st case with respect to second one.
And the question asks us the answer that is shown by number 1, so we do like this to save time and avoid confusion.
Hope this helps.
thanks very much for your reply.. i think i get it.