On reducing the price of B-Tex Malham by 30%, their selling increased by 40%.…
2023
On reducing the price of B-Tex Malham by 30%, their selling increased by 40%. What will be the effect on selling after doing this? [Find the percentage loss or profit, if there is loss subtract one from the answer, if there is profit add one to the answer]
- A.
2%
- B.
3%
- C.
4%
- D.
None of these
Attempted by 4 students.
Show answer & explanation
Correct answer: D
Solution: step-by-step calculation and final conclusion.
Assume cost price per unit = 100 and initial quantity = 100, so total cost = 100 × 100 = 10,000.
Price reduced by 30% → new selling price per unit = 100 × (1 − 0.30) = 70.
Sales increase by 40% → new quantity = 100 × (1 + 0.40) = 140.
Revenue = selling price × new quantity = 70 × 140 = 9,800.
Loss = total cost − revenue = 10,000 − 9,800 = 200, which is (200/10,000) × 100 = 2% loss.
Apply the question instruction: if there is a loss, subtract 1 from the computed percentage. Final reported percentage = 2% − 1% = 1% (loss).
Since 1% is not among the numeric choices, the correct selection is "None of these".