Alejandro Scoobertini owns a store specializing in soccer jerseys. One year, he purchased $150,000 worth of jerseys from manufacturers and later that year, sold the jerseys for $280,000. Based on this
Information, what was the value added at Alejandro's store?
A) $130,000
B) $150,000
C) $280,000
D) $40,000

Question

Quizplus · Accepted Answer

The value added at Alejandro's store is calculated by subtracting the cost of goods sold (the amount spent on purchasing the jerseys) from the revenue generated by selling the jerseys.

Value added = Revenue - Cost of goods sold

Revenue = $280,000
Cost of goods sold = $150,000

Value added = $280,000 - $150,000 
Value added = $130,000

Therefore, the answer is A) $130,000.

Alejandro Scoobertini Owns a Store Specializing in Soccer Jerseys