Question

A computer manufacturer sells laptops to retail stores for $450 each. If the manufacturer pays $200 for all of the components in each laptop and $75 in wages to it's workers, the value added to each computer by manufacturing is__________.

Answer 1

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Explanation:

Answer 2

Answer: The value added is $250.

Explanation: Value added can be defined as the amount by which the value of an article is increased at each stage of its production, exclusive of initial costs.

The manufacturer purchases the computer parts for $200, made into a computer and sold in a value added format as a computer for $450.

That means the value of assembly will be $450 - $200 = $250.

The wage cost of $75 is a part of the $250.