The price of an item was increased by 10%. This reduced

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The price of an item was increased by 10%. This reduced the monthly total sales by 20%. The overall effect on the value of monthly sales is a

1. 10% increase
2. 10% decrease
3. 12% increase
4. 12% decrease

Correct Option: D

Required percentage change

=		10 - 20 +	10 × (-20)		%
			100

= –12% Negative sign shows decrease.
Aliter : Using Rule 4,
Required percentage

=		10 - 20 -	10 × 20		= (–10 – 2) = 12% decrease.
			100