If your price increase by 10% and quantity sold increases by 20%, is there a way to quickly calculate new revenues without figuring out what the new price is or qty is after the increase? Say old price was 5, quantity was 6. Keeping the numbers simple here as an example but the real ones are much larger
Hi there,
Yes, you don’t need to calculate the new price or quantity.
Basically you have:
p*q*1,2*1,1=p*q*1,32
So you can say that revenues will increase by 1/3 after the change (or by 32% if you want to be very precise).
Best,
Francesco
Hi there,
I see what you're trying to do here, but I think in this case a shortcut will add more complexity/difficulty than anything.
I'd do .5 (10% of 5) times 1.2 (20% of 6) to understand the difference.
Hello!
I don’t think that there are any tricks here! Actually, it’s a pretty straight forward math:
Price x quantity x 1.1 x 1.2
5 x 6 x 1.1 x 1.2 = 30 x 1.1 x 1.2 = 33 x 1.2 = ~40
Hope it helps!
Cheers,
Clara
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