SOLUTION: when the price of fans was reduced by 20%, the number of fans sold increased by 40%. What was the effect on the sale proceeds?

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Question 370573: when the price of fans was reduced by 20%, the number of fans sold increased by 40%. What was the effect on the sale proceeds?
Answer by robertb(5830) About Me  (Show Source):
You can put this solution on YOUR website!
Let n = # fans sold, p = price of one fan.
Revenues without reduction = np
Revenues after price reduction = (0.80p)*(1.40n) = 1.12np.
Then 1.12np - np = 0.12np. Therefore there is 12% increase in revenues.