Chapter 25 – Value Added Tax — Compulsory & Voluntary Registration

My question relates to the video 25.2
I was initially thinking that if vine ltd decides to increase their prices and make sales of 87000 then profit will be
87000- ((4800*(1/6)). thinking that the 87000 is exclusive of VAT like the 80000.

but your solution of taking the 87000 as inclusive of tax really doesn’t make sense to me yet. because if we make that figure vat inclusive and get 72500 vat exclusive. we are not obligated to charge VAT again because the Vat exclusive amth is the amth we are looking at to decide whether we are to compulsory reg. is below the threshold and here the (4800*(1/6) you did is not correct. it should still be 4800 as expenses.

pls I need clarification, I may be missing something in terms my understanding of this part of VAT