A cotton farmer sells cotton to a textile mill for $3; the textile mill sells cloth to a shirt manufacturer, adding $2 to the value of the final shirt; the manufacturer sells the shirt to the retail store, adding $10 to the value of the final shirt; the retail store sells to a customer , adding $12 to the value of the final shirt. What is the retail price of the shirt, the price the customer pays?

Question

Quizplus · Accepted Answer

The total added value to the shirt is $2 + $10 + $12 = $24.
Therefore, the retail price of the shirt is $3 (cotton farmer price) + $24 (added value) = $27. Thus, the customer pays $27 for the shirt, which is option D.

A Cotton Farmer Sells Cotton to a Textile Mill for $3;