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The number of seats in a cinema hall is increased by 25%. The cost of each ticket is also increased by 10%. The effect of these changes on the revenue collection will be an increase of
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- 37.5%
- 45.5%
- 47.5%
- 49.5%
Correct Option: A
Let the number of seats initially in the cinema hall be 100 and the cost of each ticket be ₹ 100.
∴ Total revenue = 100 × 100 = ₹ 10000
In second condition,
Number of seats = 125
Cost of each ticket = ₹ 110
∴ New revenue
= 125 × 110 = ₹ 13750
Increase in revenue collection
= ₹. (13750 – 10000) = ₹ 3750
∴ Percentage increase
| = | × 100 = 37.5% | 10000 |
Aliter : % Increase in revenue
| = |  | x + y + |  | % | 100 |
| = | | 25 + 10 + | | % = 37.5% | 100 |
