Question

A manufacturer printed the price of his goods as 120 per article. He allowed a discount
of 30% to the wholesaler who in his tum allowed a discount of 20% on the printed price to
the retailer. If the prescribed rate of sales tax on the goods is 10% and the retailer sells it to
the consumer at the printed price then find the VAT paid by the wholesaler and the retailer.​

Answer 1

Explanation:

Cost of the article = 10000

Tax paid by Kylie = 7% of $ 10,000

                         = $ 7/100 × 10000

                         = $ 700

Selling price of the article = $ 13000

Tax charged at 9% = 9% of 13000

                           = $ 9/100 × 13000

                           = $ 1170