The price of a car increased by 5% while its sales decreased by 16%. What is the percentage change in the total revenue?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. 5% increase.
The price of a car increased by 5% while its sales decreased by 16%.
Successive increment of A% and B% results in = (A + B + AB/100)%
Here, we're taking a decrease by 16% as a (-16%) increase.
According to the question,
Now, the percentage change in the total revenue = [5 - 16 + 5(-16)/100]%
= [5 - 16 - 5(16)/100]%
= (-11 - 0.8)%
= -11.8%