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Restaurant A and Restaurant B decides to roll out a new plan which they believe will get them new customers. Restaurant A decides to give a 10% discount on the original bill amount, and then applies 15% tax on the discounted bill. Restaurant B, on the other hand applies a 15% tax on the original bill amount and then gives a 10% discount on the taxed bill.
If the original bill amount is same for both restaurants, which of the following must be true?
  • a)
    Restaurant A will be 5% cheaper than Restaurant B
  • b)
    Restaurant B will be 5% cheaper than Restaurant A
  • c)
    Restaurant A will be 10% cheaper than Restaurant B
  • d)
    Restaurant B will be 10% cheaper than Restaurant A
  • e)
    Both Restaurants will charge an equal final bill.
Correct answer is option 'E'. Can you explain this answer?
Verified Answer
Restaurant A and Restaurant B decides to roll out a new plan which the...
Let X be the original bill amount for both the restaurants.
Restaurant A:
  • Original bill amount = X
A 10% discount is given on the original bill amount.
i.e.
On this discounted price a 15% tax is applied.
i.e.
Therefore, the final bill amount in Restaurant A is 0.9X (1.15)
Restaurant B:
  • Original bill amount = X
A 15% tax is applied on the original bill amount.
i.e.
On this taxed bill, a 10% discount is applied.
i.e.
Therefore, the final bill amount in Restaurant B is 1.15X (0.9)
Comparing the final bills at both Restaurant A and Restaurant B, we see that
Both Restaurants will charge an equal final bill.
Correct Answer: Option E
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Most Upvoted Answer
Restaurant A and Restaurant B decides to roll out a new plan which the...
Analysis:
Restaurant A:
- 10% discount on original bill amount
- 15% tax on discounted bill
Restaurant B:
- 15% tax on original bill amount
- 10% discount on taxed bill

Calculation:
Let's assume the original bill amount is $100 for both Restaurant A and Restaurant B.
Restaurant A:
- 10% discount on $100 = $10 discount
- Discounted bill amount = $100 - $10 = $90
- 15% tax on $90 = $13.50
- Final bill amount = $90 + $13.50 = $103.50
Restaurant B:
- 15% tax on $100 = $15
- Taxed bill amount = $100 + $15 = $115
- 10% discount on $115 = $11.50
- Final bill amount = $115 - $11.50 = $103.50

Conclusion:
Both Restaurant A and Restaurant B will charge the same final bill amount of $103.50. Therefore, the correct answer is option 'E' - Both Restaurants will charge an equal final bill.
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Restaurant A and Restaurant B decides to roll out a new plan which they believe will get them new customers. Restaurant A decides to give a 10% discount on the original bill amount, and then applies 15% tax on the discounted bill. Restaurant B, on the other hand applies a 15% tax on the original bill amount and then gives a 10% discount on the taxed bill.If the original bill amount is same for both restaurants, which of the following must be true?a)Restaurant A will be 5% cheaper than Restaurant Bb)Restaurant B will be 5% cheaper than Restaurant Ac)Restaurant A will be 10% cheaper than Restaurant Bd)Restaurant B will be 10% cheaper than Restaurant Ae)Both Restaurants will charge an equal final bill.Correct answer is option 'E'. Can you explain this answer?
Question Description
Restaurant A and Restaurant B decides to roll out a new plan which they believe will get them new customers. Restaurant A decides to give a 10% discount on the original bill amount, and then applies 15% tax on the discounted bill. Restaurant B, on the other hand applies a 15% tax on the original bill amount and then gives a 10% discount on the taxed bill.If the original bill amount is same for both restaurants, which of the following must be true?a)Restaurant A will be 5% cheaper than Restaurant Bb)Restaurant B will be 5% cheaper than Restaurant Ac)Restaurant A will be 10% cheaper than Restaurant Bd)Restaurant B will be 10% cheaper than Restaurant Ae)Both Restaurants will charge an equal final bill.Correct answer is option 'E'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about Restaurant A and Restaurant B decides to roll out a new plan which they believe will get them new customers. Restaurant A decides to give a 10% discount on the original bill amount, and then applies 15% tax on the discounted bill. Restaurant B, on the other hand applies a 15% tax on the original bill amount and then gives a 10% discount on the taxed bill.If the original bill amount is same for both restaurants, which of the following must be true?a)Restaurant A will be 5% cheaper than Restaurant Bb)Restaurant B will be 5% cheaper than Restaurant Ac)Restaurant A will be 10% cheaper than Restaurant Bd)Restaurant B will be 10% cheaper than Restaurant Ae)Both Restaurants will charge an equal final bill.Correct answer is option 'E'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Restaurant A and Restaurant B decides to roll out a new plan which they believe will get them new customers. Restaurant A decides to give a 10% discount on the original bill amount, and then applies 15% tax on the discounted bill. Restaurant B, on the other hand applies a 15% tax on the original bill amount and then gives a 10% discount on the taxed bill.If the original bill amount is same for both restaurants, which of the following must be true?a)Restaurant A will be 5% cheaper than Restaurant Bb)Restaurant B will be 5% cheaper than Restaurant Ac)Restaurant A will be 10% cheaper than Restaurant Bd)Restaurant B will be 10% cheaper than Restaurant Ae)Both Restaurants will charge an equal final bill.Correct answer is option 'E'. Can you explain this answer?.
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