A business buys $5,000 worth of resources to produce a product.The business makes 100 units of the product and each of them sells for $65.The value added by the business to these products is:
A)$5,000
B)$6,500
C)$1,000
D)$1,500

Question

Quizplus · Accepted Answer

The value added by the business is the difference between the revenue generated from selling the product and the cost of the resources purchased to make the product.

Revenue generated from selling 100 units at $65 each = 100 x $65 = $6,500

Cost of resources purchased = $5,000

Value added by the business = Revenue generated - Cost of resources purchased = $6,500 - $5,000 = $1,500

A Business Buys $5,000 Worth of Resources to Produce a Product.The