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pickupchik [31]
3 years ago
15

A farmer buys seed for 20 cents that is used to grow wheat. The farmer sells the wheat to the miller for 35 cents, and the mille

r makes flour, which is then sold to the baker for 55 cents. The baker makes bread and sells it to the grocer for 80 cents, and the grocer sells the bread to a family for $1. What is the value added of the baker and what is the sum of the value added at each stage of production
Business
2 answers:
storchak [24]3 years ago
7 0

Answer:

The Value added of the Baker is $0.25

The sum of the value added at each stage of production is :

Farmer = $0.15

Miller = $0.20

Baker = $0.25

Grocer = $0.20

Total Value added = $0.80

Explanation:

Farmer cost = $0.20

Farmer Margin = $0.15

Farmer Sells to Miller = $0.35

Miller Margin = $0.20

Miller sells to Baker = $0.55

Baker Margin = $0.25

Baker sells to Grocer = $0.80

Grocer Margin = $0.20

Grocer sells to Family = $1.0

The concept of Value added states that a product receives extra features from the beginning of its production cycle to when it gets into the hands of its final consumers. The process of it being handed down through the Value Chain results in changes in Prices between the Input Costs and selling Prices. This difference is identified as Value added.

In this question, the Farmer added Value by turning a seed of wheat to a harvest of wheat which he sold to the Miller. The Miller further added Value by transforming the wheat into flour and selling this to the Baker. The Baker  adds value by producing a product the consumer needs and selling to the Grocer, in his case bread. The Grocer added value by making it available on the shelf and within the neighborhood of the consumer.

This is how value is added. And it varies per product and per channel of distribution too.

barxatty [35]3 years ago
6 0

Answer:

What is the value added of the baker and what is the sum of the value added at each stage of production?

  1. the value added by the baker is $0.25
  2. the total value added is $1

Explanation:

seed producer adds = selling price = $0.20

farmer adds = selling price - cost of seeds = $0.35 - $0.20 = $0.15

miller adds = selling price - cost of wheat = $0.55 - $0.35 = $0.20

baker adds = selling price - cost of flour = $0.80 - $0.55 = $0.25

grocer adds = selling price - cost of bread = $1 - $0.80 = $0.20

total value added = $0.20 + $0.15 + $0.20 + $0.25 +$0.20 = $1

The value added method simply adds the contribution of every sector in the economy to the GDP. The total value added will always equal the final price of the goods and services sold.

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german

Answer:

Explanation:

Hyperinflation occurs when the prices of goods and services increases very rapidly. This situation is stirred up when the federal government in a country prints more money in order to finance their fiscal budget, this leads to increase in price coupled with inflation, this is as a result of increase in the supply of money.

The government is supposed to secure the supply of money in order to reduce inflation instead of printing more money. Consumers that understands what this means anticipates increase in price, this makes them buy more before the eventual increase in price.

Note that during hyperinflation debtors benefits, because their debt becomes worthless due to increase in price.

3 0
3 years ago
When a bond is sold at a​ discount, the maturity value is less than the present value of the principal and interest​ payments, b
sweet [91]

Answer:

given statement is False

Explanation:

solution

As given bond sold at the​ discount

maturity value less than present value

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because bond sold at the​ discount

if bond sold at the​ discount  than maturity value will be greater than the resent value of future cash​ flow

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5 0
3 years ago
ix company issued 16,000 shares of $10 par value common stock at a market price of $21. as a result of this accounting event, th
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Answer:

increase by $336,000.

Explanation:

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<em />

Common stock will increase by $160,000, the par value, and paid-in capital in excess of par value will increase by $176,000, for a total increase in stockholders' equity of $336,000.

3 0
3 years ago
Martha worked for a marketing company with a casual atmosphere and informal culture. The company declared bankruptcy. Martha can
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In the given case, Martha worked with a company  that had a casual and open atmosphere. But after joining employment in a bank she herself understood that different attitude will be needed there to work. She herself adjusted her personality and dressing  as per the demand of the environment.

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7 0
3 years ago
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An auditor no longer assumes all inventories to which the auditee has a name to be available a the date of the depend. A few bought goods may also still be in transit at that time. Additionally, some stock may be on consignment or in public warehouses through properly included in the county.

An audit is an "impartial exam of monetary statistics of any entity, whether or not profit oriented or now not, no matter its size or legal form whilst such an exam is performed so one can explicit an opinion thereon.”

An auditor is a person or a firm appointed with the aid of an employer to execute an audit. to act as an auditor, someone should be licensed by means of the regulatory authority of accounting and auditing or possess sure detailed qualifications.

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6 0
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