Use the following to answer questions .
Exhibit: Stages of Production of Toy Model Airplanes

-(Exhibit: Stages of Production of Toy Model Airplanes) The value added by the sale of a model airplane to the customer is _____.
A) $2
B) $3
C) $4
D) $5

Question

Use the following to answer questions .
Exhibit: Stages of Production of Toy Model Airplanes
 
-(Exhibit: Stages of Production of Toy Model Airplanes) 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 by the sale of a model airplane to the customer is the final selling price minus the cost of materials and the cost of labor. In this exhibit, the final selling price is $6, the cost of materials is $1, and the cost of labor is $1, so the value added by the sale of the model airplane to the customer is $4 ($6 - $1 - $1 = $4). Therefore, the best choice is C.

Use the Following to Answer Questions