anonymous
  • anonymous
A manufacturer marks an article for Rs. 5000. He sells it to a wholesaler at a discount of 25% on the marked price and the wholesaler sells it to the retailer at a discount of 15%. The retailer sells it a consumer at the marked price and at each stage the VAT is 8%. Calculate the amount of VAT received by the government from: i) the wholesaler ii)the retailer
Mathematics
  • Stacey Warren - Expert brainly.com
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SOLVED
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katieb
  • katieb
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hoblos
  • hoblos
i) the wholesaler get a 25% discount so he pays to the manufacturer 75% of the Rs 5000 75% of 5000 is 3750 the VAT is 8% 8% of 3750 is Rs 300 ii) the retailer get a 15% discount so he pays to the manufacturer 85% of 5000 85% of 5000 is 4250 the VAT is 8% 8% of 4250 is Rs 340
anonymous
  • anonymous
No offence, but are you sure that's right? you either calculate VAT on the profit or as the difference between tax recovered and tax paid.
anonymous
  • anonymous
or so i thought.

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