When the price of a watch was reduced by 20%, the number of watches sold is increased by 40%. What was the effect on the sales in percentage?
Answer & explanation
Correct answer: option 1
20% = \(\frac{1}{5}\) , 40% = \(\frac{2}{5}\)
Ratio of ,
Price 5 : 4
Quantity 5 : 7
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Sale 25 : 28
{ Total Sale = Price × Number of items sold }
Increase percentage = \(\frac{3}{25}\) × 100 = 12%