A trade analyst announced 10% reduction in the unit price of bike. As a result, the sales volume went up by 25%. What was the net effect on the sales revenue? Select the correct option:  A) no change  B) decreases by 12.5%  C) increases by 12.5%  D) increases by 10%  E) None of these
Explanation :   Reduction of price = (100 -10)= 
<gadget id="calculator">(100 -10)</gadget>
<output>90</output>
90%= 0.9   Increase of sale = (100+25)= 
<gadget id="calculator">(100+25)</gadget>
<output>125</output>
125%= 1.25   Total effect = 0.90X 1.25 = 112.5%, Increases by 12.5%   Answer : increases by 12.5%
<result>C</result>
A trade analyst announced 10% reduction in the unit price of bike. As a result, the sales volume went up by 25%. What was the net effect on the sales revenue?