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Sagot :
The quantity effect of the sale of an additional bottle would result in an increase in revenue by $45 whereas the price effect of the sale of an additional bottle would result in a decrease in revenue by $50.
What is sales revenue?
Sales revenue is the amount earned by a company by selling their manufactured goods or services
Given values:
For quantity effect (reduced price is constant and quantity changes)
Number of bottles sold at a normal price: 10
Number of bottles sold at a reduced price: 11
Price on the additional bottle (reduced price): $45
Computation of quantity effect on revenue:
[tex]\rm\ Quantity \rm\ effect =(\rm\ Number \rm\ of \rm\ bottles \rm\ at \rm\ a \rm\ reduced \rm\ price- \rm\ Number \rm\ of \rm\ bottles \rm\ at \rm\ a \rm\ normal \rm\ price) \times \rm\ Reduced \rm\ price\\\rm\ Quantity \rm\ effect =(11- 10) \times \$45\\\rm\ Quantity \rm\ effect =\$45[/tex]
For price effect (quantity is constant and the price is changing)
Number of bottles sold at a normal price: 10
Normal price: $50
Price on the additional bottle (reduced price): $45
Computation of price effect on revenue:
[tex]\rm\ Price \rm\ effect =(\rm\ Normal \rm\ price - \rm\ Reduced \rm\ price ) \times \rm\ Number \rm\ of \rm\ bottles \rm\ at \rm\ a \rm\ normal \rm\ price\\\rm\ Price \rm\ effect =\$50 -\$ 45 ) \times 10\\\rm\ Price \rm\ effect =\$50[/tex]
Therefore, the revenue increased by $45 in the quantity effect and decreased by $50 in the price effect on the additional sale.
Learn more about the quantity effect in the related link;
https://brainly.com/question/17322397
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