If sales revenue at 60% capacity is Rs. 4,50,000, sales revenue at 70% capacity on a fall in selling price by 5% would be?

Rs. 4,98,750
Rs. 7,50,000
Rs. 5,25,000
Rs. 7,12,500

The correct answer is A. Rs. 4,98,750.

Let $x$ be the sales revenue at 70% capacity. We

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know that the sales revenue at 60% capacity is Rs. 4,50,000. We also know that the selling price falls by 5%. This means that the new selling price is 0.95 times the old selling price.

We can use the following equation to find $x$:

$x = 0.7 \times 4,50,000 \times 0.95 = 4,98,750$

Therefore, the sales revenue at 70% capacity is Rs. 4,98,750.

Option B is incorrect because it is the sales revenue at 100% capacity. Option C is incorrect because it is the sales revenue at 60% capacity. Option D is incorrect because it is the sales revenue at 70% capacity with no change in selling price.

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