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by [email protected] » Thu Apr 09, 2009 5:59 am
If the circus were to sell all of its 220 tickets for this month's performance at its usual price, the revenue from sales would be 10% greater than that collected last month. If the circus raised the ticket price by 5% and sold only 200 tickets as a result, what percent less would last month's revenue be compared to this month's revenue



[spoiler]100/21[/spoiler]
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by odod » Thu Apr 09, 2009 6:27 am
Hello,


I just made up a ticket price. Say $100 is the ticket price.

If the circus sold 220 tickets. Then Revenue = 220 * $100 = $22,000

This revenue - $22,000 - is 10% higher than the revenue collected last month's revenue. Last month's revenue must be $20,000.


So, if ticket prices were raised by 5% then ticket prices go from $100 to $105. And since 200 tickets were sold, then revenue is $105 * 200 = $21,000.

Last Months Revenue = $20,000
This Months Revenue (with increased ticket prices and less sales) = $21,000.

The revenue is $1,000 lower. $1,000/$21000 = 0.0476

To get this into a percentage, 0.0476 * 100 = 4.76%.

Which is the same as 100/21.

Cheers.
ODOD
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Senior | Next Rank: 100 Posts
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Joined: Tue Jan 13, 2009 12:59 pm
Location: Toronto
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by odod » Thu Apr 09, 2009 6:27 am
Hello,


I just made up a ticket price. Say $100 is the ticket price.

If the circus sold 220 tickets. Then Revenue = 220 * $100 = $22,000

This revenue - $22,000 - is 10% higher than the revenue collected last month's revenue. Last month's revenue must be $20,000.


So, if ticket prices were raised by 5% then ticket prices go from $100 to $105. And since 200 tickets were sold, then revenue is $105 * 200 = $21,000.

Last Months Revenue = $20,000
This Months Revenue (with increased ticket prices and less sales) = $21,000.

The revenue is $1,000 lower. $1,000/$21000 = 0.0476

To get this into a percentage, 0.0476 * 100 = 4.76%.

Which is the same as 100/21.

Cheers.
ODOD
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