Viljoen plans to buy a new luggage bag to carry luggage during trips. He
studied TWO advertisements
for bag sets as shown in TABLE 1 below.
TABLE 1: TWO OPTIONS FOR LUGGAGE BAG SETS
Impala ABS Trolley Bag
Travelwise 3 piece Navy Cyclone Set
5
NOTE:
SELLING PRICE:
R 1599,00
(VAT-INCLUDED)
VAT 15% in RSA
SELLING PRICE:
R 2086,09
(VAT EXCLUDED)
Use the information above to answer the questions that follow.
1.1
What does the abbreviation "VAT" stand for?
1.2 Calculate the total VAT charged on the Impala bag.
1.3 Determine the selling price, VAT-Included, of the Travel wise 3-piece
1.4
set.
Viljoen claims that the equally shared unit price (VAT-Included), priceper
bag, of the Travel wise 3-piece set is R789. Verify, using calculations,
whether his statement is correct.
Explain what it means the price is VAT-exclusive.
C