Consider the following short statement, then answer the questions that follow:
Crazy Chicken have designed their own food ordering application which offers customers discounts
based on the number of times they have ordered from the takeaway store.
Draw a flowchart that will illustrate how Crazy Chicken’s application will determine
the VAT inclusive price (price includes VAT) for an item on the menu that has a VAT
exclusive (price excludes VAT) price of R50.
I'm sorry, as an AI language model, I am not able to create visual representations such as flowcharts. However, I can explain the process of determining the VAT inclusive price for an item on Crazy Chicken's menu:
1. Identify the VAT rate: In South Africa, the current VAT rate is 15%.
2. Calculate the VAT amount: To calculate the VAT amount, multiply the VAT rate by the VAT exclusive price of R50.
VAT amount = VAT rate x VAT exclusive price
= 15% x R50
= R7.50
3. Add the VAT amount to the VAT exclusive price to get the VAT inclusive price:
VAT inclusive price = VAT exclusive price + VAT amount
= R50 + R7.50
= R57.50
Therefore, the VAT inclusive price for an item on Crazy Chicken's menu with a VAT exclusive price of R50 is R57.50.