This business/management problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
ScanSolve AI Answer
Step 1: Calculate the selling price for each human wig. The cost of each human wig is R900. The business's profit mark-up is 50%. The selling price is calculated by adding the mark-up to the cost price. Mark-up amount = Cost price × Mark-up percentage Mark-up amount = R900 × 0.50 Mark-up amount = R450 Selling price = Cost price + Mark-up amount Selling price = R900 + R450 Selling price = R1350 R1350 Step 2: Calculate the discount on cash sales. Cash sales in February 2024 amounted to R5 500. The discount granted is 2.5% on all cash sales. Discount amount = Cash sales × Discount percentage Discount amount = R5500 × 0.025 Discount amount = R137.50 R137.50 Step 3: Calculate the amount that the business will receive after granting the discount. The amount received is the cash sales less the discount amount. Amount received = Cash sales - Discount amount Amount received = R5500 - R137.50 Amount received = R5362.50 R5362.50 Step 4: Determine if Carly's Hair Trading can get a refund from SARS and explain why. Yes, it is possible for Carly's Hair Trading to get a refund from SARS, provided the business is registered as a VAT vendor. As a VAT vendor, Carly's Hair Trading would pay input VAT on purchases from suppliers like ATP Cash and Carry. If the input VAT paid exceeds the output VAT collected on its own sales, SARS would owe Carly's Hair Trading a refund. Yes, if Carly's Hair Trading is a registered VAT vendor. Step 5: Calculate sales excluding VAT. The total sales amount is R9 000, VAT inclusive. The standard VAT rate in South Africa is 15%. To find the sales excluding VAT, divide the VAT inclusive amount by (1 + VAT rate). Sales excluding VAT = VAT inclusive amount1 + VAT rate Sales excluding VAT = R90001 + 0.15 Sales excluding VAT = R90001.15 Sales excluding VAT ≈ R7826.0869 Rounding off to the nearest rand: Sales excluding VAT = R7826 R7826 Step 6: Calculate VAT on sales. VAT on sales can be calculated by subtracting the sales excluding VAT from the VAT inclusive amount. VAT on sales = VAT inclusive amount - Sales excluding VAT VAT on sales = R9000 - R7826 VAT on sales = R1174 R1174 That's 2 down. 3 left today — send the next one.