A jar of DeLux popcorn,ultimately sold to a customer at Friendly Groceries,is produced by the following production process:

-What is the value added of DeLux Popcorn Co.?
A) $0.50.
B) $1.50.
C) $2.00.
D) $2.50.
E) $7.00.

Question

A jar of DeLux popcorn,ultimately sold to a customer at Friendly Groceries,is produced by the following production process:
 
-What is the value added of DeLux Popcorn Co.?
A) $0.50. 
B) $1.50. 
C) $2.00. 
D) $2.50. 
E) $7.00.

Quizplus · Accepted Answer

The value added of a product is the difference between the selling price and the cost of inputs used in the production process. In this case, the selling price of the DeLux popcorn is $4.50, and the cost of inputs (corn, oil, salt, packaging) is $2.50. Therefore, the value added is $2.00.

A Jar of DeLux Popcorn,ultimately Sold to a Customer at Friendly