Assume That a Product Has the Following Three Stages of Production

question 32

Multiple Choice

Assume that a product has the following three stages of production: $$\begin{array} { c l } \text { Production } & \text { Selling } \\\text { Stage } & \text { Price } \\\hline 1 & € 600 \\2 & € 1,400 \\3 & € 1,700\end{array}$$ If the value-added tax (VAT) rate is 15%,what would be the VAT over all stages of production?

• A)€ 90
• B)€120
• C)€465
• D)€255

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Definitions:

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