UPSC Exam  >  UPSC Questions  >  A shop owner offers the following discount op... Start Learning for Free
A shop owner offers the following discount options on an article to a customer:
1. Successive discounts or 10% and 20%, and then pay a service tax of 10%
2. Successive discounts of 20% and 10%, and then pay a service tax of 10%
3. Pay a service tax or 10% first, then successive discounts of 20% and 10%
Which one of the following is correct?
  • a)
    1 only is the best option for the customer.
  • b)
    2 only is the best option for the customer.
  • c)
    3 only is the best option for the customer.
  • d)
    All the options are equally good for the customer.
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
A shop owner offers the following discount options on an article to a ...
View all questions of this test
Most Upvoted Answer
A shop owner offers the following discount options on an article to a ...
Successive Discounts and Service Tax Options

There are three discount options available for a customer who wants to purchase an article from a shop owner. Each option has a different discount percentage and service tax applied at different stages of the transaction. The options are:

1. Successive discounts of 10% and 20%, and then pay a service tax of 10%
2. Successive discounts of 20% and 10%, and then pay a service tax of 10%
3. Pay a service tax of 10% first, then successive discounts of 20% and 10%

The customer needs to choose the option that gives them the maximum benefit in terms of overall cost savings.

Analysis of Options

Let's analyze each option to determine which one is the best for the customer:

Option 1: Successive Discounts of 10% and 20%, and then pay a Service Tax of 10%

- Discount 1: 10%
- Discount 2: 20%
- Service Tax: 10%

To calculate the final cost, we need to apply the discounts and then add the service tax. Let's say the original price of the article is Rs. 100.

After the first discount of 10%, the price becomes Rs. 90.

After the second discount of 20%, the price becomes Rs. 72.

Finally, we add the service tax of 10% to get the final price of Rs. 79.20.

Option 2: Successive Discounts of 20% and 10%, and then pay a Service Tax of 10%

- Discount 1: 20%
- Discount 2: 10%
- Service Tax: 10%

Using the same original price of Rs. 100, let's calculate the final cost under this option:

After the first discount of 20%, the price becomes Rs. 80.

After the second discount of 10%, the price becomes Rs. 72.

Finally, we add the service tax of 10% to get the final price of Rs. 79.20.

Option 3: Pay a Service Tax of 10% First, then Successive Discounts of 20% and 10%

- Service Tax: 10%
- Discount 1: 20%
- Discount 2: 10%

Using the same original price of Rs. 100, let's calculate the final cost under this option:

First, we add the service tax of 10% to the original price to get Rs. 110.

After the first discount of 20%, the price becomes Rs. 88.

After the second discount of 10%, the price becomes Rs. 79.20.

Conclusion

In all three options, the final price after applying the discounts and service tax is the same, i.e., Rs. 79.20. Therefore, all three options are equally good for the customer in terms of cost savings. The customer can choose any of the three options based on their preference or convenience.
Free Test
Community Answer
A shop owner offers the following discount options on an article to a ...
Hey
Explore Courses for UPSC exam

Top Courses for UPSC

A shop owner offers the following discount options on an article to a customer:1. Successive discounts or 10% and 20%, and then pay a service tax of 10%2. Successive discounts of 20% and 10%, and then pay a service tax of 10%3. Pay a service tax or 10% first, then successive discounts of 20% and 10%Which one of the following is correct?a)1 only is the best option for the customer.b)2 only is the best option for the customer.c)3 only is the best option for the customer.d)All the options are equally good for the customer.Correct answer is option 'D'. Can you explain this answer?
Question Description
A shop owner offers the following discount options on an article to a customer:1. Successive discounts or 10% and 20%, and then pay a service tax of 10%2. Successive discounts of 20% and 10%, and then pay a service tax of 10%3. Pay a service tax or 10% first, then successive discounts of 20% and 10%Which one of the following is correct?a)1 only is the best option for the customer.b)2 only is the best option for the customer.c)3 only is the best option for the customer.d)All the options are equally good for the customer.Correct answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A shop owner offers the following discount options on an article to a customer:1. Successive discounts or 10% and 20%, and then pay a service tax of 10%2. Successive discounts of 20% and 10%, and then pay a service tax of 10%3. Pay a service tax or 10% first, then successive discounts of 20% and 10%Which one of the following is correct?a)1 only is the best option for the customer.b)2 only is the best option for the customer.c)3 only is the best option for the customer.d)All the options are equally good for the customer.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A shop owner offers the following discount options on an article to a customer:1. Successive discounts or 10% and 20%, and then pay a service tax of 10%2. Successive discounts of 20% and 10%, and then pay a service tax of 10%3. Pay a service tax or 10% first, then successive discounts of 20% and 10%Which one of the following is correct?a)1 only is the best option for the customer.b)2 only is the best option for the customer.c)3 only is the best option for the customer.d)All the options are equally good for the customer.Correct answer is option 'D'. Can you explain this answer?.
Solutions for A shop owner offers the following discount options on an article to a customer:1. Successive discounts or 10% and 20%, and then pay a service tax of 10%2. Successive discounts of 20% and 10%, and then pay a service tax of 10%3. Pay a service tax or 10% first, then successive discounts of 20% and 10%Which one of the following is correct?a)1 only is the best option for the customer.b)2 only is the best option for the customer.c)3 only is the best option for the customer.d)All the options are equally good for the customer.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of A shop owner offers the following discount options on an article to a customer:1. Successive discounts or 10% and 20%, and then pay a service tax of 10%2. Successive discounts of 20% and 10%, and then pay a service tax of 10%3. Pay a service tax or 10% first, then successive discounts of 20% and 10%Which one of the following is correct?a)1 only is the best option for the customer.b)2 only is the best option for the customer.c)3 only is the best option for the customer.d)All the options are equally good for the customer.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of A shop owner offers the following discount options on an article to a customer:1. Successive discounts or 10% and 20%, and then pay a service tax of 10%2. Successive discounts of 20% and 10%, and then pay a service tax of 10%3. Pay a service tax or 10% first, then successive discounts of 20% and 10%Which one of the following is correct?a)1 only is the best option for the customer.b)2 only is the best option for the customer.c)3 only is the best option for the customer.d)All the options are equally good for the customer.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for A shop owner offers the following discount options on an article to a customer:1. Successive discounts or 10% and 20%, and then pay a service tax of 10%2. Successive discounts of 20% and 10%, and then pay a service tax of 10%3. Pay a service tax or 10% first, then successive discounts of 20% and 10%Which one of the following is correct?a)1 only is the best option for the customer.b)2 only is the best option for the customer.c)3 only is the best option for the customer.d)All the options are equally good for the customer.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of A shop owner offers the following discount options on an article to a customer:1. Successive discounts or 10% and 20%, and then pay a service tax of 10%2. Successive discounts of 20% and 10%, and then pay a service tax of 10%3. Pay a service tax or 10% first, then successive discounts of 20% and 10%Which one of the following is correct?a)1 only is the best option for the customer.b)2 only is the best option for the customer.c)3 only is the best option for the customer.d)All the options are equally good for the customer.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice A shop owner offers the following discount options on an article to a customer:1. Successive discounts or 10% and 20%, and then pay a service tax of 10%2. Successive discounts of 20% and 10%, and then pay a service tax of 10%3. Pay a service tax or 10% first, then successive discounts of 20% and 10%Which one of the following is correct?a)1 only is the best option for the customer.b)2 only is the best option for the customer.c)3 only is the best option for the customer.d)All the options are equally good for the customer.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice UPSC tests.
Explore Courses for UPSC exam

Top Courses for UPSC

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev