A farmer grows wheat and sells it to a bakery for $5.The bakery bakes the wheat into bread, which it sells to a distributor for $20.The distributor sells the bread to a supermarket for $30, which sells the bread to customers for $50.At which stage was the most value added?

Question

Quizplus · Accepted Answer

The most value added stage is at the supermarket stage where the bread is sold for $50, generating a profit of $20 compared to the distributor stage where it was sold for $30, generating a profit of $10. Therefore, the highest value added occurred at the stage where the final sale to customers occurred.

A Farmer Grows Wheat and Sells It to a Bakery