Scenario: Infi Corp. is a leading manufacturer of smart phones. Every year, customers spend $31 billion on smart phones manufactured by Infi Corp. A leading retailer generates $10 billion worth of total sales, while the remaining is generated directly from consumers. The retailer pays 70 percent of its revenue to Infi Corp., and Infi Corp. pays $19 billion to its suppliers.
-Refer to the scenario above.The retailer adds a value of ________ to the production process.
A) $5 billion
B) $10 billion
C) $3 billion
D) $1 billion

Question

Quizplus · Accepted Answer

The retailer generates $10 billion in sales and pays 70% of this ($7 billion) to Infi Corp., meaning it retains $3 billion, which is the value it adds to the production process.