A farmer buys seed for 15 cents that is used to grow wheat. The farmer sells the wheat to the miller for 30 cents, who makes flour. The flour is sold to the baker for 60 cents and the baker makes bread, which is sold to the grocer for 90 cents. The grocer sells the bread for $1.25. What is the value added for the grocer?

Question

Quizplus · Accepted Answer

The value added for each stage is:
- Farmer: 15 cents
- Miller: 30 cents - 15 cents = 15 cents
- Baker: 60 cents - 30 cents = 30 cents
- Grocer: $1.25 - 60 cents = 65 cents
Therefore, the value added for the grocer is 65 cents - 30 cents = 35 cents.

A Farmer Buys Seed for 15 Cents That Is Used