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

-Refer to Table 6-3. The value added by the sale of a model airplane to the customer is _____.
A) $2
B) $3
C) $4
D) $5

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 value added by the sale of a model airplane to the customer is _____.
A) $2 
B) $3 
C) $4 
D) $5

Quizplus · Accepted Answer

The value added is calculated as the final sale price minus the cost of intermediate goods. If the model airplane is sold for $10 and the intermediate goods cost $6, the value added is $10 - $6 = $4.

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