Question

Suppose a jar of orange marmalade that is ultimately sold to a customer at The Corner Store is produced by the following production process: Name of Company Revenues Cost of Purchased Inputs Citrus Growers Inc. $0.75 0 Florida Jam Company $2.00 $0.75 The Corner Store $2.50 $2.00 What is the value added of Florida Jam Company

Answer 1

$1.75

Step-by-step explanation:

Value added is calculated by subtracting the difference of revenue and the cost of inputs.

value added of Florida Jam Company = $2.50 - $0.75 = $1.75