# What is the total amount that all parties pay as taxes to the government in the following case: The taxation system in a state collects a tax of 10% for the price of the good being sold at every stage. A farmer sells wheat to a trucker at \$120, the trucker adds a 20% margin and sells it to the cookie company. The cookie maker adds a margin of 40% and sells them to the retailer. The retailer has a profit margin of 14%.

When the farmer sells wheat at \$120, he pays a tax of 120*0.1 = \$12.

In the next stage the trucker adds a margin of 10% and sells the wheat to the cookie company.

The taxes he pays are (\$120*1.2*0.1) = 14.4

The cookie company adds a 40% margin and sells the cookies to the retailer. The taxes they pay are \$120*1.2*1.4*0.1 = 20.16.

The retailer has a margin of 14% and sells the cookies to the customer. The taxes they pay are: \$120*1.2*1.4*1.14*0.1 = 22.98

Therefore the total amount paid as taxes is:

12 + 14.4 + 20.16 + 22.98 = \$69.54

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