SOLUTION: The price of a product is reduced by 12%. By what percentage must the sales grow, if the profit should be the same. Please help by explanation or just a rule

Algebra ->  Algebra  -> Percentages: Solvers, Trainers, Word Problems and pie charts -> SOLUTION: The price of a product is reduced by 12%. By what percentage must the sales grow, if the profit should be the same. Please help by explanation or just a rule      Log On

 Ad: Algebrator™ solves your algebra problems and provides step-by-step explanations! Ad: Algebra Solved!™: algebra software solves algebra homework problems with step-by-step help!

 Algebra: Percentage and Pie Charts Solvers Lessons Answers archive Quiz In Depth

 Click here to see ALL problems on percentage Question 370472: The price of a product is reduced by 12%. By what percentage must the sales grow, if the profit should be the same. Please help by explanation or just a ruleAnswer by stanbon(57246)   (Show Source): You can put this solution on YOUR website!The price of a product is reduced by 12%. By what percentage must the sales grow, if the profit should be the same. Please help by explanation or just a rule ------------------------ Assume original price was "p" and # sold was "x" Then original revenue was px. ------ Reduced price = 0.88p --- Equation: New revenue must equal old revenue (0.88p)y = px where y is the new number of items sold y = (px)/(0.88p) y = x/0.88 y = 1.1364 x ---- The number of items sold must increase by 13.64% =============================== Cheers, Stan H. =========