Table 6-3 shows data relating to the stages of production of toy model airplanes.
Table 6-3

-Refer to Table 6-3. The total value added in the production of a model airplane is _____.
A) $16
B) $17
C) $21
D) $77

Question

Table 6-3 shows data relating to the stages of production of toy model airplanes.
Table 6-3
 
-Refer to Table 6-3. The total value added in the production of a model airplane is _____.
A) $16 
B) $17 
C) $21 
D) $77

Quizplus · Accepted Answer

To calculate the total value added, we need to add up the value added at each stage.

For stage 1: $4 - $2 = $2 (value added)
For stage 2: $6 - $4 = $2 (value added)
For stage 3: $8 - $6 = $2 (value added)
For stage 4: $3 - $8 = -$5 (value added)

Note that for stage 4, there is a negative value added because the cost of materials increased by $8 but the production value only increased by $3, resulting in a loss.

Therefore, the total value added is $2 + $2 + $2 - $5 = $1, which is answer choice C.

Table 6-3 Shows Data Relating to the Stages of Production