Assume That a Product as the Following Three Stages of Production

question 9

Multiple Choice

Assume that a product as the following three stages of production: $\begin{array}{ll} \text {Production }& \text { Selling }\\\text { Stage } & \text { Price } \\1 & \text { EUR600 } \\2 & \text { EUR1,400 } \\3 & \text { EUR1,700 }\end{array}$ If the value-added tax (VAT) rate is 15%,what would be the incremental VAT at Stage 2 of production?

• A) EUR90.
• B) EUR120.
• C) EUR210.
• D) EUR255.

---

Definitions:

Control Group

In experimental research, a group of subjects that does not receive the experimental treatment and is used as a baseline to compare the effects of the treatment.

Diabetes

A chronic condition characterized by high levels of sugar in the blood, due to the body's inability to produce or effectively use insulin.

Experimental Group

In research, the group that receives the variable being tested, contrasted with the control group.

Treatment

The application of remedies or interventions intended to relieve or heal a disorder, illness, or disease.