Question

Caroline is an artist. She purchases canvas, paints, brushes, and accessories for $75. She sells one of her original paintings to an art gallery for $1,500, even though an art lover would pay $4,500 for that painting. How much value does Caroline add

Answer 1

1.425 dollars of value added

Step-by-step explanation:

The value of the painting added by Caroline is between the $75 dollar of raw materials and the $1,500 which is the amount at which she sold the canvas in the art gallery.

If, over the course of time the canvas market value increase this will not change the value added by Caroline.

1,500 - 75 = 1.425 dollars