Alejandro Scoobertini owns a store specializing in soccer jerseys.In 2012,he purchased $150,000 worth of jerseys from manufacturers,employed one worker for $40,000,purchased $20,000 worth of supplies from an office supply store,and sold jerseys for $280,000.Based on this information,what was the value added at Alejandro's store in 2012?

Question

Quizplus · Accepted Answer

Value added is the difference between the value of the output and the value of the inputs. In this case, the value of the output is $280,000 and the value of the inputs is $150,000 + $40,000 + $20,000 = $210,000. Therefore, the value added is $280,000 - $210,000 = $70,000.

Alejandro Scoobertini Owns a Store Specializing in Soccer Jerseys