Question

In a cinema hall, the charge per person is $₹\, 200$. On the first day, only $60\%$ of the seats were filled. The owner decided to reduce the price by $20\%$ and there was an increase of $50\%$ in the number of spectators on the next day. The percentage increase in the revenue on the second day was

• A. 50
• B. 40
• C. 30
• D. 20

Answer 1

Answer: (D)

Let total seats $= x$
Ticket price of each seat $= ₹\, 200$
On first day $60\%$ of seats over filled
$\because$ Total revenue $ = \frac{60}{100} x \times 200 = 120\,x$
On second day
Ticket price $= 200 - 20\%$ of $200 = 160$
Total seat filled on $2$nd day
$ = \frac{60}{100} x + \frac{50}{100} \times \frac{60 x}{100} = \frac{90 x}{100}$
Total revenue on $2$nd day
$ = \frac{90 x}{100} \times 160 = 144 x$
Percentage increase in revenue on $2$nd day
$ = (\frac{144 x - 120 x}{120 x}) \times 100$
$ = \frac{24}{120} \times 100 = 20\%$