Firm Q and Firm R conduct business in a jurisdiction that imposes a 3% VAT. Firm Q produces videos at a $6 cost per unit and sells the videos to firm R for $9. Firm R sells the videos at retail for $10 per unit. This year, the combined efforts of firm Q and Firm R resulted in sales of 12.4 million videos to the public.
Compute the VAT for each firm?