| 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 |
A) 37.5 %
B) 45.5%
C) 47.5%
D) 49.5%
Correct Answer: A
Solution :
| Let the number of seats initially in the cinema hall be 100 and the cast of each ticket be Rs. 100. |
| \[\therefore \]Total revenue \[=100\times 100=\,\,\text{Rs}\text{.}\,\,\text{10000}\] |
| In second condition, |
| Number of seats \[=125\] |
| Cost of new ticket \[=\text{Rs}.\,\,110\] |
| \[\therefore \]New revenues \[=110\times 125=13750\] |
| Increase in revenue collection |
| \[=\text{Rs}\text{.}\,\,\text{(13750}-1000)=\text{Rs}\text{.}\,\,\text{3750}\] |
| \[\therefore \]Percentage increase \[=\frac{3750}{10000}\times 100=37.5\]% |
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