Hosi purchased a vacuum cleaner for R 950,00 (excluding vat) from melrose suppliers. When she received her invoice, she was surprised to see that the total amount she owes is R1092,50.

Question

Give a reason why the invoice amount and the marked price of the vacuum cleaner are different. 1 mark make it short

Answer 1

The invoice amount includes VAT, which is added to the marked price, resulting in the higher total.