AP 21-1 (Turnover Tax vs. GST) You have been appointed tax policy advisor to a country that has never used sales taxes on goods or services. Because of the increasing need for revenues, the finance minister, Maximus Surplus, is committed to introducing a sales tax. He is considering two alternatives: - A 5% value added tax using the same invoice-credit approach that has been incorporated into Canada's GST/HST. - A turnover tax that is applied as goods move from the raw materials supplier to the manufacturer to the wholesaler to the distributor to the retailer and finally to the consumer. Minister Surplus would like you to calculate the turnover tax rate that would produce the same amount of revenue as the alternative 5% VAT. In illustrating this to Minister Surplus, he would like you to assume a sale price of $250 plus tax by the raw materials supplier to the manufacturer. At this and subsequent turnover points, he would like you to assume a markup by each seller in the distribution and supply chain of 40% of their before-tax cost. Required: Provide the requested information together with an explanation of your calculations