Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Business Arithmetic

Question:
Assertion: In the case of a restaurant, the "unit of sale" would be a "Diner" and the average amount billed per “Diner” would be the “Unit Price”.
Reasoning: A group may consist of 10 people or 5 or 2. At times it may even be one. In each case, the number of persons paying the bill would most likely be one.
Options:
Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.
Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.
Assertion (A) is true but Reasoning (R) is not correct.
Assertion (A) is not true but Reasoning (R) is correct.
Correct Answer:
Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.
Explanation:
In the case of a restaurant, the ―unit of sale- would be a ―Diner. This is different from the person who pays the bill. A group may consist of 10 people or 5 or 2. At times it may even be one. In each case, the number of persons paying the bill would most likely be one. So it is more accurate to go by the number of ―Diner. The “Diner” is the “Unit of Sale” and the average amount billed per “Diner” would be the “Unit Price”. In the case of a restaurant that provides only Buffet Lunch or Dinner, life is simple. It is like a single product business.