Madhya Pradesh Police Exam Model Paper 10

Given:
Cycle is decreased by 20%
Then the selling is increased by 20%.
Formula used:
Loss% = (Loss × 100)/Cost price
Calculation:
Let earlier sale be Rs. x
And earlier price be Rs. y
The earlier revenue be Rs. xy
According to the question:
New price $=\mathit{R}\mathit{s}.\mathit{y}\times \left(80/100\right)$
$\Rightarrow \mathit{R}\mathit{s}.4\mathit{y}/5$
New sale $=\mathit{R}\mathit{s}.\mathit{x}\times \left(120/100\right)$
$\Rightarrow \mathit{R}\mathit{s}.6\mathit{x}/5$
New revenue $=\left(4\mathit{y}/5\right)\times \left(6\mathit{x}/5\right)$
$\Rightarrow 24\mathit{x}\mathit{y}/25$
Loss $=\left(\mathit{x}\mathit{y}\mathit{–}24\mathit{x}\mathit{y}/25\right)$
$\Rightarrow \left(25\mathit{x}\mathit{y}\mathit{–}24\mathit{x}\mathit{y}\right)/25$
$\Rightarrow \mathit{x}\mathit{y}/25$
Loss% $=\left(\mathit{x}\mathit{y}\times 100\right)/\left(25\times \mathit{x}\mathit{y}\right)$
⇒ 4%
∴ The impact on the receipt of the revenue is 4% loss.