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When the Price of fans was reduced by 20 %. The number of fans sold increased by 40 %. What was the effect on the sales of rupees?

Correct answer: A. 12 % Increase

  • A. 12 % Increase
  • B. 12 % decrease
  • C. 30 % increase
  • D. 40 % increase

Explanation

Take the original price as Rs. 100 and the original number sold as 100, making original sales Rs. 10,000. The new sales are 80% × 140% = 112% of the original, so sales increase by 12%. The likely mistake is to subtract 20% from 40% and choose a 20% change, rather than multiplying the two factors.

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Percentages express a quantity as parts per hundred and support calculations involving increases, decreases, discounts, commissions, taxes, and successive changes. Questions require distinguishing percentage change from percentage points and identifying the original value when a final value and its percentage change are given.

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