If the price of an article increases by 49% and the sale of that article…
2018
If the price of an article increases by 49% and the sale of that article decreases by 21%, then what is the approximate effect on collection?
- A.
21% decrease
- B.
15% decrease
- C.
28% increase
- D.
18% increase
Attempted by 4 students.
Show answer & explanation
Correct answer: D
To find the total effect on the collection when both the price and sales change, we use the concept of successive percentage changes.
Step-by-Step Calculation
Understand the change factors:
Price increases by 49%: The new price factor is 1 + 0.49 = 1.49.
Sales decrease by 21%: The new sales factor is 1 - 0.21 = 0.79.
Calculate the combined effect:
Total Collection = (Price Factor) × (Sales Factor)
Total Collection = 1.49 × 0.79 = 1.1771
Convert to percentage:
An increase factor of 1.1771 represents an increase of 0.1771 (or approximately 17.71%).
Rounding to the nearest whole percentage, we get an 18% increase.