Question

Suppose that furniture production encompasses the following stages: Stage 1: Trees are sold to lumber company. $1,800 Stage 2: Lumber is sold to furniture company. $4,000 Stage 3: Furniture company sells furniture to retail store. $8,200 Stage 4: Furniture store sells furniture to consumer. $12,500 Instructions: Enter your responses rounded to the nearest whole number. a. What is the value added at each stage

Answer 1

Stage 1 value added $1,800

Stage 2 value added $2,200

Stage 3 value added $4,200

Stage 4 value added $4,300

Step-by-step explanation:

Calculation to determine the value added at each stage

Stage 1 value added = $1,800

Stage 2 value added =$4,000 – $1,800

Stage 2 value added=$2,200

Stage 3 value added = $8,200 – $4,000

Stage 3 value added = $4,200

Stage 4 value added =$12,500 – $8,200

Stage 4 value added =$4,300

Therefore the value added at each stage are:

Stage 1 value added $1,800

Stage 2 value added $2,200

Stage 3 value added $4,200

Stage 4 value added $4,300