A restaurant offers a new promotion of 20% off the original price of cakes, which is Rs. 12. Before the promotion 250cakes were sold each day. After the promotion, the sale ofcakes 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
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.