Andrea pays Ted $900 to build a fence at her home. Ted spends $500 at Home Depot for wood and nails, pays his assistant $100 and keeps the remaining money. Ted's value added is

Question

Quizplus · Accepted Answer

Ted's value added is the amount he is paid minus the cost of materials and labor. Therefore, his value added is $900 - $500 - $100 = $300. This is the amount he keeps for his profit, so his total earnings are $300 + $500 + $100 = $900.

Andrea Pays Ted $900 to Build a Fence at Her