The price of an article is reduced by 10% but the daily sale of the article is increased by 20%. The net effect on the daily sale receipts is:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Increase in 8%
Given that
The price of the article is reduced by 10%
And the sale is increased by 20%
Hence, the net effect on sale receipt = -10 + 20 - (10 × 20/100) = 10 - 2 = 8% increased