CAT 1996 — QA Question 28
Direction: Answer the questions based on the following information.
A salesman enters the quantity sold and the price into the computer. Both the numbers are two-digit numbers. But, by mistake, both the numbers were entered with their digits interchanged. The total sales value remained the same, i.e. Rs. 1,148, but the inventory reduced by 54.
The price of a Maruti car rises by 30% while the sales of the car come down by 20%. What is the percentage change in the total revenue?
Answer & solution
- A
-4%
- B
-2%
+4%
- D
+2%
This can simply be solved by multiplying the two multiplication factors to get the effective multiplication factor. e.g. multiplication factor for 30% increase = 1.30. Multiplication factor for 20% decrease = 0.8. Hence, 1.30 × 0.8 = 1.04. This multiplication factor (i.e. 1.04) indicates that there is a 4% increase in total revenue. So the answer is +4.
Alternative method:
By using the formula x + y +
∴ x = +30%; y = – 20%
⇒ 30 + 60 +
= 30 – 20 – 6 = +4%