Note: Enter your answers in dollars not in millions of dollars.

Querrey Incorporated and Ronno Incorporated conduct business in a foreign country that imposes a 3 percent VAT. Querrey produces entertainment videos at a $7.40 material cost per unit and sells the videos to Ronno for $10.40 per unit. Ronno sells the videos at retail for $11.90 per unit. This year, the combined efforts of Querrey and Ronno resulted in sales of 10.10 million videos to the public.

Required:

Compute the VAT for each corporation.

Note: Enter your answers in dollars not in millions of dollars.

Querrey Incorporated:

Ronno Incorporated