Final answer:
The value added for SugarInc is calculated by subtracting the sum of wages paid ($9,000) and taxes paid ($1,000) from the revenue received from the sale of sugar ($23,000), resulting in a value added of $13,000.
Step-by-step explanation:
The value added for SugarInc is the difference between its sales revenue and the sum of its wages and taxes. To calculate the value added, we subtract the total cost of wages and taxes from the revenue:
Value Added = Revenue - (Wages Paid + Taxes Paid)
Value Added = $23,000 - ($9,000 + $1,000)
Value Added = $23,000 - $10,000
Value Added = $13,000
Therefore, the value added for SugarInc is $13,000. This amount represents the economic value SugarInc has added to its inputs through its production processes. In broader economic terms, value added can also reflect the company's contribution to the overall economy through the payment of wages, taxes, and its revenue generation.