A foreign country reduces its import duty on an Indian exporter's product from 30% to 10%. The exporter estimates that the reduction in import duties - which he will pass on fully by reducing prices -- will increase the volume of sales by 50%. The revenue obtained in that market turned out to be Rs 165Cr. What would the revenue have been if the exporter continued selling at the old price?

Question

Option 1: Rs 130 Cr

Option 2: Rs 132 Cr

Option 3: Rs 150 Cr

Option 4: Rs 110 Cr

AfterBoards · Accepted Answer

The answer is 'Rs 130 Cr'. View full solution:

BMSAT Kozhikode (QA) PYQs

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