Using Table 3, calculate the cost of 200 A2 posters excluding VAT, identify items also available, and…

Question

Using Table 3, calculate the cost of 200 A2 posters excluding VAT, identify items also available, and determine the VAT difference between May 2018 and May 2017 for these posters. Additionally, find t

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Activity 1

1.1.1

Locate "Posters A2" in Table 3.
Find the cost for "200" posters under the "COST (VAT excluded)" column.
The cost (VAT excluded) for 200 A2 posters is R1 999.

1.1.2
Identify the items listed under "Also available" that are not already in Table 3 with prices.
The items with prices indicated in the table are Pamphlets A5, Business cards, Posters A2, Posters A1, and Banner 2 m long.
The other items available are Brochures, files, magazines, and calendars.

1.1.3
Determine the VAT rates for May 2018 and May 2017.
VAT from 1 April 2018 = 15% (for May 2018).
VAT before 1 April 2018 = 14% (for May 2017).
Find the cost of 200 A2 posters (VAT excluded) from Table 3.
Cost (VAT excluded) = R1 999.
Calculate the VAT amount for May 2018.
VAT (May 2018) = 15% of R1 999 = 0.15 × R1 999 = R299,85.
Calculate the VAT amount for May 2017.
VAT (May 2017) = 14% of R1 999 = 0.14 × R1 999 = R279,86.
Calculate the difference in VAT.
Difference = VAT (May 2018) - VAT (May 2017)
Difference = R299,85 - R279,86 = R19,99.

1.1.4
Locate "Pamphlets A5" in Table 3.
Find the total cost (VAT included) for "5 000" pamphlets.
Total cost (VAT included) for 5 000 pamphlets = R1 148,85.
Calculate the unit cost.
Unit cost = Total cost (VAT included) / Number of pamphlets
Unit cost = R1 148,85 / 5 000 = R0,22977.
The unit cost per A5 pamphlet (VAT included) for 5 000 pamphlets is R0,23.

1.1.5
Determine the VAT-included cost for each item Ivan orders.
- 5 000 A5 pamphlets: R1 148,85 (from table)
- 1 000 business cards: The table shows 500 business cards cost R343,85 (VAT included). Cost for 1 000 business cards = 2 × R343,85 = R687,70.
- 200 A1 posters: R3 448,85 (from table)
- 1 banner: R918,85 (from table)
Calculate the total cost (VAT included) before the discount.
Total cost = R1 148,85 + R687,70 + R3 448,85 + R918,85 = R6 204,25.
Apply the 25% discount.
Discount amount = 25% of R6 204,25 = 0.25 × R6 204,25 = R1 551,0625.
Amount Ivan will pay = Total cost - Discount amount
Amount Ivan will pay = R6 204,25 - R1 551,0625 = R4 653,1875.
Alternatively, Amount Ivan will pay = R6 204,25 × (1 - 0.25) = R6 204,25 × 0.75 = R4 653,1875.
Rounding to two decimal places, the total amount Ivan will pay is R4 653,19.

Using Table 3, calculate the cost of 200 A2 posters excluding VAT, identify items also available, and determine the VAT difference between May 2018 and May 2017 for these posters. Additionally, find t

Step-by-step solution

Activity 1

Locate "Posters A2" in Table 3.

Find the cost for "200" posters under the "COST (VAT excluded)" column.

Identify the items listed under "Also available" that are not already in Table 3 with prices.

Determine the VAT rates for May 2018 and May 2017.

Find the cost of 200 A2 posters (VAT excluded) from Table 3.

Calculate the VAT amount for May 2018.

Calculate the VAT amount for May 2017.

Calculate the difference in VAT.

Locate "Pamphlets A5" in Table 3.

Find the total cost (VAT included) for "5 000" pamphlets.

Calculate the unit cost.

Determine the VAT-included cost for each item Ivan orders.

Calculate the total cost (VAT included) before the discount.

Apply the 25% discount.

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