Question

Boeing buys $3 million worth of steel, $2.5 million worth of computer hardware and software, and $1 million worth of mechanical tools to manufacture a certain model of aircraft. Boeing sells this particular model at $10 million. The value added by Boeing is equal to:______

Answer 1

3+2.5=5.5

5.5+1=6.5

10-6.5= 3.5 The value added by Boeing is equal to 3.5

Answer 2

3.5 million

Step-by-step explanation:

Value added=final price-costs

=10-3-2.5-1

=3.5 million

The value added by Boeing is $3.5 million