Reduction in profit...by how much

52 Views Asked by At

If an organization sells $n$ tickets then the profit would be 20% more than the total costs of production. Lets say that it sold all the tickets except 5% of them. What is the reduction in profit?

How to tackle these problems?

Progress

I have got the answer, selling price would be $1.2 and if 95 tickets sold then selling price be 114 that means 14% profit. Answer posted below.

1

There are 1 best solutions below

0
On BEST ANSWER

$n$ be $100$ tickets and each be $\$$$1.00$ then

total cost = $100$x$\$$$1.00$ = $\$$$100$

total Selling price is, 120% greater than cost = $120$$\$$

each ticket be $\frac{120}{100}$ = $\$$$1.2$

if 95% of 100 tickets are sold then 95 tickets are sold

Selling price be $95$x$1.2$ = $\$$$114$

hence profit is $14$%..