Paper 1 · Mathematical Reasoning and Aptitude
The number of seats in an auditorium is increased by 25% and the price of a ticket is increased by 12%. By what percentage does the revenue increase?
A37%
B40% ✓ Correct
C42%
DNone of the above
Correct answer: (B) 40% — The revenue increases by 40%, so that is the answer.
Explanation
★The revenue increases by 40%, so that is the answer.
★Revenue is the number of seats multiplied by the price of a ticket.
★The seats become 1.25 times and the price becomes 1.12 times.
★So the revenue becomes 1.25 times 1.12 of the original.
★1.25 times 1.12 is 1.40, a rise of 0.40.
★So the revenue increases by 40%.
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