Table 19-5
Consider the table above showing three stages of production of an automobile.
-Refer to Table 19-5. The value added by the automobile dealer equals
A) $7,000.
B) $15,000.
C) $18,000.
D) $25,000.

Question

Table 19-5
  Consider the table above showing three stages of production of an automobile.
-Refer to Table 19-5. The value added by the automobile dealer equals
A) $7,000. 
B) $15,000. 
C) $18,000. 
D) $25,000.

Quizplus · Accepted Answer

The value added by the automobile dealer is calculated as the difference between the selling price of the car and the price at which the dealer purchased it. If the dealer bought the car for $18,000 and sold it for $25,000, the value added is $25,000 - $18,000 = $7,000.

Table 19-5 Consider the Table Above Showing Three Stages of Stages