Firm Q and Firm R
conduct business in a foreign country that imposes a 3 percent VAT.
Firm Q produces entertainment videos at a $3.4 material cost per
unit and sells the videos to Firm R for $5.6 per unit. Firm R sells
the videos at retail for $6.3 per unit. This year, the combined
efforts of Firm Q and Firm R resulted in sales of 8.2 million
videos to the public. Compute the VAT for each firm.
(Enter your answers in dollars not in millions of
dollars.)
VAT
Firm Q
Firm R
