22. The young MBA son of a colour TV manufacturer wanted to position his CTV at par with Samsung and hiked the price of the CTV by 15%. To his fatherâ€™s surprise, the sale of CTVs in terms of numbers went down by 15%. What was the net effect on the sales revenue of CTVs for the company?
OPTION
(a) No effect
(b) 1.5% increase
(c) 2.25% decrease
(d) 2.25% increase

suppose each tv costs 100rs an sales were 100 in number, therefore revenue is 10000.
after hiking price by 15% each tv costs 115rs due to sales decreased by 15% which are 85 in number, therefore revenue now, is 9775.
therefore revenue in % = (9775/1000)*100 => 97.75%
initial revenue precent is 100 => 100-97.75 = 2.25% decrease
11 years agoHelpfull: Yes(16) No(2)

the formula for net effect on sales is (a)+(b)+a*b/100
i.e,(-15)+(15)+(-15*15)/100
=0-225/100
=-2.25
=>decreasi in 2.25 percentage
11 years agoHelpfull: Yes(11) No(1)
Let colour tv cost is 100
after 15%increase cost becomes 115
again after 15%decrease 115-(115*15)/100=97.75
reduce cost in in exact cost is=100-97.75=2.25
then we can say decrease by 2.25%
11 years agoHelpfull: Yes(8) No(1)
15^2/100=2.25%
11 years agoHelpfull: Yes(4) No(3)
2.25% decrease....
11 years agoHelpfull: Yes(1) No(4)
let 100rs is a CTV cost then assume 100 is sales
after increasing the cost by 15% it becomes 115 rs then the sales has got down to 15%,mean 100 - 15=85 is the sales now.
that implies prev revenue= 100*100 = 10,000
now 115*85 = 9775
difference in revenue is 10,000 - 9775 = 225
profit/loss % =(225/10000) * 100 = 2.25
As the revenue is decreased,there will be loss only.
so ans is C)2.25 decrease
8 years agoHelpfull: Yes(1) No(0)
suppose c.p of tv= Rs.100, s.p increasing 15%=Rs.115,15% of Rs.115 is 17.75.soafter decreasing 15%,the s.p of T.v =115-17.75=Rs 97.75.so loss=100-97.75=2.25%,decrease.
11 years agoHelpfull: Yes(0) No(0)
for this type we have X^2/10^2
1.5^2/100=2.25
it should be decrease
11 years agoHelpfull: Yes(0) No(0)
%Loss=((15/10)^2)%=2.25% decrease

because, when profit and loss % are same then always loss occurs.
8 years agoHelpfull: Yes(0) No(0)

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