a) Find the value added tax paid by the wholesaler and the retailer. b) Find the price including value added tax paid by the customer to buy the handicraft. c) Find the amount of tax collected by the government from wholesaler and retailer. d) If wholesaler had sold the product at printed price to retailer and no discount has been offered, retailer would have made more profit?. Discuss with reasons
Q3: Oman Manufacturing Company a handicraft manufacturer printed the price of its goods as RO 120 per handicraft. Manufacturer allowed a discount of 30% to the wholesaler who in his turn allowed a discount of 20% on the printed price to the retailer. If the prescribed rate of VAT on the goods is 15% and the retailer sells it to the consumer at the printed price then:
a) Find the value added tax paid by the wholesaler and the retailer.
b) Find the price including value added tax paid by the customer to buy the handicraft.
c) Find the amount of tax collected by the government from wholesaler and retailer.
d) If wholesaler had sold the product at printed price to retailer and no discount has been offered, retailer would have made more profit?. Discuss with reasons
Note: only solve the last remaining question please.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 5 images
