Table 6-6 shows the different stages in the production of an office building. A mining firm extracts iron from the earth. A steel mill converts the iron to steel beams for use in construction. A construction company uses the steel beams to make a building. Assume that the total product of these firms represents the only components of the building and that they will have no other uses.
Table 6-6

-Refer to Table 6-6. Suppose the value-added tax is 10%. What is the amount paid by Crane Construction to Fuller Mill?
A) $825,000
B) $725,000
C) $247,500
D) $225,000

Question

Table 6-6 shows the different stages in the production of an office building. A mining firm extracts iron from the earth. A steel mill converts the iron to steel beams for use in construction. A construction company uses the steel beams to make a building. Assume that the total product of these firms represents the only components of the building and that they will have no other uses.
Table 6-6
 
-Refer to Table 6-6. Suppose the value-added tax is 10%. What is the amount paid by Crane Construction to Fuller Mill?
A) $825,000 
B) $725,000 
C) $247,500 
D) $225,000

Quizplus · Accepted Answer

The Answer of Table 6-6 shows the different stages in the production of an office building. A mining firm extracts iron from the earth. A steel mill converts the iron to steel beams for use in construction. A construction company uses the steel beams to make a building. Assume that the total product of these firms represents the only components of the building and that they will have no other uses.
Table 6-6
 
-Refer to Table 6-6. Suppose the value-added tax is 10%. What is the amount paid by Crane Construction to Fuller Mill?
A) $825,000 
B) $725,000 
C) $247,500 
D) $225,000

Table 6-6 Shows the Different Stages in the Production of an Office