Sam's Semiconductors produces computer chips,which it sells for $10 million to Carl's Computer Company (CCC).CCC's computers are sold for a total of $16 million.What is the value added of CCC?
A)$6 million
B)$10 million
C)$16 million
D)$26 million

Question

Quizplus · Accepted Answer

The value added of CCC is the difference between the sale price of its final product ($16 million) and the cost of the inputs it purchased from Sam's Semiconductors ($10 million). Therefore, the value added of CCC is $6 million (16 - 10 = 6). Option A is the correct choice.

Sam's Semiconductors Produces Computer Chips,which It Sells for $10 Million