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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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Witch of the following words describe a candidate that comes off well in the media, particularly on television? A. Cynical B. Cr
Studentka2010 [4]
The correct answer should be D. Mediagenic

It means that he is very loved by the media. It is like photogenic, except for the media.
5 0
3 years ago
Stoneheart Group is expected to pay a dividend of $3.11 next year. The company's dividend growth rate is expected to be 4.2 perc
lukranit [14]

Answer:

$43.19

Explanation:

Use dividend discount model(DDM) to solve this question; specifically constant dividend growth model.

P0 = D1/(r-g)

P0 = Current price

D1 = Next year's dividend = $3.11

r = investors' required return = 11.4% or 0.114 as a decimal

g = dividend growth rate = 4.2% or 0.042 as a decimal

P0 = 3.11/(0.114 - 0.042)

P0 = $43.19

Therefore, this stock price is $43.19

8 0
3 years ago
You are considering investing $2,600 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 4% a
lorasvet [3.4K]

Answer:

40% , 24% and 16%

Explanation:

Total Amount invested = $2600

Portfolio is composed of :

Treasury bills paying 4%,  Risky portfolio P,  Two risky securities ( X and Y )

Optimal weights

X = 60% , Y = 40%

Expected rate of return

X = 16% ,  Y = 11%

<u>To form a complete portfolio with an expected rate of return of 8% </u>

Invest approximately 40% in risky portfolio

Invest approximately 24% and 16% of your complete portfolio in security X and Y

attached below is the detailed solution

3 0
3 years ago
Read 2 more answers
Ann hires a nanny to watch her two children while she works at a local hospital. She pays the 19-year-old nanny $170 per week fo
aksik [14]

Answer:

Nanny's Portion of Social Security is $442.68  

Ann's Portion of Social Security Tax is $442.68

Nanny's Portion of Medicare Tax is $103.53  

Ann's Portion of Medicare Tax is $103.53

Explanation:

As explained by the Internal Revenue Service (IRS) under "Topic No. 751 Social Security and Medicare Withholding Rates", the social security tax rate are 6.2 percent for the employer and 6.2 percent for the employee, while the Medicare rate for employee is 1.45 percent and it is also 1.45 percent for the employer. In addition, the wage base limit for 2020 social security tax is $137,700.

Base on the above, we proceed as follows:

Step 2: Calculation total salary of nanny

Total salary of nanny = weekly rate × number of weeks worked

                                   = $170 × 42

                                   = $7,140

Step 2: Calculation of social security tax

Since the nanny's salary is below the wage base limit of $137,700, the tax rates are applied to the actual salary of $7,140 as follows:

Nanny's Portion of Social Security Tax = $7,140 × 6.2% = $442.68  

Ann's Portion of Social Security Tax = $7,140 × 6.2% = $442.68

Step 3: Calculation of Medicare tax

Since there is no wage base limit for Medicare tax, the tax rates are applied to the actual salary of $7,140 as follows:

Nanny's Portion of Medicare Tax = $7,140 × 1.45% = $103.53  

Ann's Portion of Medicare Tax = $7,140 × 1.45% = $103.53

6 0
3 years ago
What requires frequent safety and health inspections
Gwar [14]

Answer:

The food and drug industry

Explanation:

The Pure Food and Drug Act of 1906

5 0
2 years ago
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