Trick â 3 : Percentage Tricks (āĻļāĻ¤āĻā§°āĻž āĻšāĻŋāĻāĻžāĻĒā§° āĻā§āĻļāĻ˛)
1. Price Increase and Sales Decrease
Rule: When the price of an item increases by m% and its sales decrease by n%, the percentage change in revenue is: (āĻā§āĻ¨ā§ āĻŦāĻ¸ā§āĻ¤ā§ā§° āĻŽā§āĻ˛ā§āĻ¯ m% āĻŦā§āĻĻā§āĻ§āĻŋ āĻā§°ā§ āĻŦāĻŋāĻā§ā§°ā§ n% āĻšā§ā§°āĻžāĻ¸ āĻš'āĻ˛ā§, āĻŽā§āĻ āĻāĻ¯āĻŧā§° āĻļāĻ¤āĻā§°āĻž āĻĒā§°āĻŋā§ąā§°ā§āĻ¤āĻ¨ āĻš'āĻŦ:)
Formula: Revenue Change % = (m - n) - m* n / 100
Example 1:
Q. If the price of a pressure cooker increases by 20% and its sales decrease by 50%, what is the percentage change in revenue ? (āĻĒā§ā§°ā§āĻāĻžā§° āĻā§āĻāĻžā§°ā§° āĻŽā§āĻ˛ā§āĻ¯ 20% āĻŦā§āĻĻā§āĻ§āĻŋ āĻšā§ā§ąāĻžā§° āĻĢāĻ˛āĻ¤ āĻŦāĻŋāĻā§ā§°ā§ 50% āĻšā§ā§°āĻžāĻ¸ āĻĒāĻžāĻ˛ā§, āĻŽā§āĻ āĻāĻ¯āĻŧā§° āĻāĻŋāĻŽāĻžāĻ¨ āĻļāĻ¤āĻžāĻāĻļ āĻĒā§°āĻŋā§ąā§°ā§āĻ¤āĻ¨ āĻš'āĻŦ ?)
Solution:
2. Price Decrease and Sales Increase
Rule: When the price of an item decreases by m% and its sales increase by n%, the percentage change in revenue is: (āĻā§āĻ¨ā§ āĻŦāĻ¸ā§āĻ¤ā§ā§° āĻŽā§āĻ˛ā§āĻ¯ m% āĻšā§ā§°āĻžāĻ¸ āĻā§°ā§ āĻŦāĻŋāĻā§ā§°ā§ n% āĻŦā§āĻĻā§āĻ§āĻŋ āĻš'āĻ˛ā§, āĻŽā§āĻ āĻāĻ¯āĻŧā§° āĻļāĻ¤āĻā§°āĻž āĻĒā§°āĻŋā§ąā§°ā§āĻ¤āĻ¨ āĻš'āĻŦ:)
Formula: Revenue Change % = (-m + n) - m * n / 100
Example 2:
Q. If the price of a fan decreases by 25% and its sales increase by 40%, what is the effect on revenue ? (āĻĢā§āĻ¨ā§° āĻŽā§āĻ˛ā§āĻ¯ 25% āĻšā§ā§°āĻžāĻ¸ āĻšā§ā§ąāĻžā§° āĻĢāĻ˛āĻ¤ āĻŦāĻŋāĻā§ā§°ā§ 40% āĻŦā§āĻĻā§āĻ§āĻŋ āĻĒāĻžāĻ˛ā§, āĻŽā§āĻ āĻāĻ¯āĻŧā§° āĻāĻĒā§°āĻ¤ āĻāĻŋ āĻĒā§ā§°āĻāĻžā§ą āĻĒā§°āĻŋāĻŦ ?)
Solution:
= (-25 + 40) - 25 * 40 / 100
= 15 - 10
@. Important Note (āĻŽāĻ¨āĻ¤ ā§°āĻžāĻāĻŋāĻŦāĻž)
- Positive (+) Value = Percentage Increase (āĻļāĻ¤āĻā§°āĻž āĻŦā§āĻĻā§āĻ§āĻŋ)āĨ¤
- Negative (−) Value = Percentage Decrease (āĻļāĻ¤āĻā§°āĻž āĻšā§ā§°āĻžāĻ¸)āĨ¤
Short Trick
- Price ↑ + Sales ↓ → (m - n) - mn / 100
- Price ↓ + Sales ↑ → (-m + n) - mn / 100