A manufacturer produced a good with a value of 300, the retailer added 140 to the value of the good. Assuming the value added tax rate is 10% the final price to the consumer would be

Question

Quizplus · Accepted Answer

First, we add the value added by the retailer to the original value of the good:

300 + 140 = 440

Then, we calculate the value added tax (VAT) at a rate of 10%:

VAT = 0.1 x 440 = 44

Finally, we add the VAT to the price:

Price = 440 + 44 = 484

A Manufacturer Produced a Good with a Value of 300