The number of cinema tickets sold increases by 35% and the price of a ticket increases by 15%. Find the percentage increase in the revenue.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 55.25%
Revenue \(=\) tickets sold \(\times\) price, so the two increases multiply; they are not just added.
New revenue \(=1.35\times1.15=1.5525\) times the old revenue
Increase \(=1.5525-1=0.5525=55.25\%\)
(Same result: \(35+15+\frac{35\times15}{100}=50+5.25=55.25\))
The revenue increases by 55.25%.
Why the other options are incorrect
Option (2) 60.25% — Incorrect. The extra part over 50% is \(\frac{35\times15}{100}=5.25\), not 10.25.
Option (3) 42.25% — Incorrect. This is less than the simple total of 50%, but two increases together always give more than their sum.
Option (4) 60% — Incorrect. It does not match \(1.35\times1.15=1.5525\); the increase is 55.25%.