Question

A farmer grows wheat and sells it to the miller for $84. The miller turns the wheat into flour and sells it to the baker for $109. The baker turns the flour into bread and sells it to consumers for $189.What is the value added by the baker

Answer 1

Value added = $80

Step-by-step explanation:

Use the below formula to find the value added by the baker:

Baker buys the flour at the cost of = $109

Baker sells it to the cosmumer and receives = $189

The value added can be calculated by subtracting the cost from the receipts.

Value added =Receipts from the sale - Cost

Value = 189 - 109

Value added = $80