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