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A restaurant offers a new promotion of 20% off the original price of cakes, which is Rs. 12. Before the promotion 250 cakes were sold each day. After the promotion, the sale of cakes increases an average of 18% more per day. How much more or less does the restaurant make each day in cakes sales after the promotion?

Correct Answer: Rs. 168 less

Explanation:

Cost of each cake P1 & P2 = Rs. 12


Offer decrease in % = 20%


Increase in sale per day (Q2) = 250 - 18%


Total quantity per day (Q1) = 250


Hence, required change total revenue


TR = P2Q2 - P1Q1 = (12 x 0.8 x 250 x 1.18) -  (12 x 250) = - Rs.168.


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