The number of seats in a cinema hall is increased by 25%. The cost of each ticket is increased by 10%. The effect of these changes on the revenue collection will be an increase of?
Let the number of seats initially inth cinema hall be 100 and the cost of weach ticket be ₹ 100.
Total revenue = 100 x 100 = ₹10000
In second condition,
Number of seats = 125
Cost of new tickets = ₹110
New Revenue = 110 x 125 = ₹13750
Increase in revenue collection = ₹ (13750-10000) = ₹3750
Percentage increase = (3750/10000) x 100 = 37.5%
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