That would be the revenue if the number of sales didn't change. The problem asks you to find the percent increase in sales that must occur so that the profit (really the revenue) will stay the same.chawki said:Homework Statement
The price of a product is reduced by 12%.
Homework Equations
By what percentage must the sales grow, if the profit should he the same ?
The Attempt at a Solution
let's assume the original price is P, and the number sold was x, then the original revenue is P*x.
reduction of 12% means that the new price is 0.88*P, Thus the new revenue is 0.88*P*x
"Getting the same profit" refers to the idea of maintaining a consistent level of profit over a period of time. This means that your income and expenses are balanced, resulting in a steady stream of profits.
Having a consistent level of profit allows for better financial planning and stability. It also ensures that your business is sustainable in the long term.
There are several factors that can impact your ability to maintain the same profit, such as changes in market demand, competition, and economic conditions. Additionally, internal factors such as operational costs and efficiency can also play a role.
To ensure a consistent level of profit, businesses can implement strategies such as cost-cutting measures, diversifying their product or service offerings, and continuously monitoring and adjusting their financial plans.
If a business is unable to maintain the same profit, it may struggle to cover expenses and may eventually face financial difficulties. This can lead to layoffs, reduced investments in growth, and even bankruptcy in extreme cases.