Question

Alejandro scoobertini owns a store specializing in soccer jerseys. in 2016, he purchased $150,000 worth of jerseys from manufacturers, employed one worker for $40,000, purchased $20,000 worth of supplies from an office supply store, and sold jerseys for $280,000. based on this information, what was the value added at alejandro's store in 2016?

Answer 1

Value added at Alejandro's store at 2016 is the profit he made after deducting expenses. His expenses are as follows: $150,000 worth of jerseys + employed one worker for $40,000 + $20,000 worth of supplies from an office supply store = $ 210, 000. Since he sold the Jersey for $280, 000; he made a profit of $ 280, 000 - $ 210, 000 = $ 70, 000. Value added to Alejandro's store is $70, 000