Assume That a Product Has the Following Three Stages of Production

question 92

Multiple Choice

Assume that a product has the following three stages of production: $$\begin{array}{l}\text { Production Selling }\\\begin{array} { c c } \text { Stage } & \text { Price } \\\hline 1 & € 100 \\2 & € 250 \\3 & € 750\end{array}\end{array}$$ If the value-added tax (VAT) rate is 20%,what would be the VAT over all stages of production?

• A)€110
• B)€120
• C)€150
• D)€225