The table given below reports the sales value at each stage ofproduction of the soft drink Pepsi. Table 5.3
Refer to Table 5.3.The value added by the wholesaler is equal to:
A)$0.05.
B)$0.40.
C)$0.20.
D)$1.15.
E)$0.06.

Question

The table given below reports the sales value at each stage ofproduction of the soft drink Pepsi. Table 5.3
 Refer to Table 5.3.The value added by the wholesaler is equal to:
A)$0.05. 
B)$0.40. 
C)$0.20. 
D)$1.15. 
E)$0.06.

Quizplus · Accepted Answer

The value added by each stage is calculated by subtracting the cost of inputs from the value of outputs. The wholesaler's value added can be calculated as follows:
Value added by wholesaler = Value of sales by wholesaler - Cost of inputs to wholesaler
= $0.80 - $0.60
= $0.20
Therefore, the correct answer is C) $0.20.

The Table Given Below Reports the Sales Value at Each