The manufacturer sold a TV to a wholesaler for Rs.7000. The wholesaler sold it to a trader at a profit of Rs.1000. If the trader sold it to the customer at a profit of Rs.1500, find: the total VAT (value added tax) collected by the state government at the rate of $5 \%$.
Explanation
To find the total VAT collected, we need to find the selling price of the TV at each stage and then calculate the VAT. The selling price at the wholesaler's stage is Rs. 7000 + Rs. 1000 = Rs. 8000. The selling price at the trader's stage is Rs. 8000 + Rs. 1500 = Rs. 9500. The VAT collected is 5% of the selling price, which is 5% of Rs. 9500.
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