Final answer:
The cost of chocolate per 100g without VAT in Switzerland, given the price is 70p including VAT, is approximately 65p. This calculation assumes the Swiss VAT rate of 7.7%.
Step-by-step explanation:
The question revolves around calculating the cost of chocolate per 100g without the inclusion of Value-Added Tax (VAT) in Switzerland, given its price including VAT. The cost of chocolate with VAT is 70p per 100g. Assuming the VAT rate is the standard Swiss rate of 7.7%, we will first calculate the amount of VAT contained in the 70p and then deduct it to find the cost without VAT.
The cost of chocolate without VAT per 100g when traded in Switzerland at 70p is approximately 65p.
To calculate the price without VAT, we use the formula:
Price without VAT = Price with VAT / (1 + VAT rate).
So, if the chocolate costs 70p including VAT, the calculation is 70p / (1 + 0.077), which equals approximately 65p per 100g. It is essential to understand that the VAT rate is expressed as a decimal in calculations, where 7.7% becomes 0.077.