Sure, let's go through each part of the question thoroughly.
### 1.2.1 What does the abbreviation VAT stand for?
VAT stands for Value Added Tax. It's a type of indirect tax that is imposed on goods and services at each stage of production or distribution. In simpler terms, it's the tax added to the price of goods or services, which consumers ultimately pay.
### 1.2.2 Calculate the value of A.
We need to determine the value of [tex]\( A \)[/tex], which is the Charge per kWh excluding VAT for the range 351-600 kWh. We are given the Charge per kWh including VAT for this range, which is 1.5351, and we know that the VAT percentage is 15%.
Firstly, recall the relationship between the Charge per kWh excluding VAT and Charge per kWh including VAT. The formula is:
[tex]\[ \text{Charge per kWh (Incl. VAT)} = A + A \times \text{VAT percentage} \][/tex]
Where:
- [tex]\( A \)[/tex] is the Charge per kWh excluding VAT.
- VAT percentage is 15%, which can be expressed as 0.15 in decimal form.
Incorporating the VAT percentage into the equation, we get:
[tex]\[ \text{Charge per kWh (Incl. VAT)} = A \times (1 + \text{VAT percentage}) \][/tex]
Substituting the values we know:
[tex]\[ 1.5351 = A \times (1 + 0.15) \][/tex]
[tex]\[ 1.5351 = A \times 1.15 \][/tex]
To find [tex]\( A \)[/tex], we need to isolate it on one side of the equation. We do this by dividing both sides by 1.15:
[tex]\[ A = \frac{1.5351}{1.15} \][/tex]
Performing the division gives us:
[tex]\[ A \approx 1.3349 \][/tex]
So, the value of [tex]\( A \)[/tex] (Charge per kWh excluding VAT for the range 351-600 kWh) is approximately 1.3349.
### Summary:
1. VAT stands for Value Added Tax.
2. The value of [tex]\( A \)[/tex] (Charge per kWh excluding VAT for the range 351-600 kWh) is 1.3349.
