Querrey Incorporated and Ronno Incorporated conduct business in a foreign country that imposes a $3$ percent VAT. Querrey produces entertainment videos at a $$7\mathrm{.}20$ material cost per unit and sells the videos to Ronno for $$10\mathrm{.}10$ per unit. Ronno sells the videos at retail for $$11\mathrm{.}50$ per unit. This year, the combined efforts of Querrey and Ronno resulted in sales of $10\mathrm{.}00$ million videos to the public.

Required:

Compute the VAT for each corporation.