Revenue Loss

Multiplication Sums for Class 3

Example:

A Company Has Determined That if the Price of an Item Is Rs 40, Then 150 Will Be Demanded by Consumers. When the Price Is Rs 45, 100 Will Be Demanded by Consumers. Find the Revenue for Both Cases.

Answer:

For the 1st case, the revenue will be
150 × Rs 40 = Rs 6000
For the 2nd case, the revenue will be
100 × Rs 45 = Rs 4500

Addition, Subtraction and Multiplication:

1) A Chef Sells 640 Sandwiches in the Market for Rs 10 per Each. He Has Done a Market Survey and Got to Know That Reduction of Rs 2 in Price Will Help Him to Sell 60 Sandwiches More. If He Started Selling Sandwiches at a Reduced Price, he would Find His Change in Revenue. Also, Write Down if the Revenue Increased or Decreased.

The total revenue of the chef when he sold 640 sandwiches in the
market for Rs 10 per each is
640 × Rs 10 = Rs 6400

Now, if the sandwich’s price is decreased by Rs 2, then now the
cost of the sandwich is
Rs 10 – Rs 2 = Rs 8

The number of selling sandwiches increases when the price is
reduced.
Then the number of sandwiches sold is
640 + 60 = 700
So, the total revenue of the chef when he sells 700 sandwiches for
the Rs 8 per each is
700 × Rs 8 = Rs 5600
The change in revenue is
Rs 6400 – Rs 5600 = Rs 800

Hence, the change in revenue after the difference in price and the change in the number of sandwiches sold is Rs 800. In this case, the income has decreased in the second case.

2) A Fruit Seller Sells 640 kg of Mango in the Market for Rs 80 per Kg. But Another Fruit Seller on the Market Has Sold 40 kg Lesser Mango Than the First Seller for Rs 20 per Kg Increased Price. Find Who Has Earned More Revenue. Also, Find the Difference Between Their Revenue. Whose Revenue Is Greater?

The total revenue of the first fruit seller when he sells 640 kg of mango in the market for Rs 80 per kg is 640 × Rs 80 = Rs 51200

If the second fruit seller has increased the price of the mango by Rs 40 per kg. So, he sold the mango at the price Rs 80 + Rs 20 = Rs 100

The second fruit seller sold 40 kg less mango than the first. So, the second fruit seller has sold 640 kg – 40 kg = 600 kg

The total revenue of the second fruit seller when he sells 600 kg of mango in the market for Rs 100 per kg is 600 × Rs 100 = Rs 60000 The change in revenue is Rs 60000 – Rs 51200 = Rs 800

Hence, the revenue change after the price change and the change in the sold kg of mango is Rs 800. The revenue of the second fruit seller is greater than the first seller.