Answer: $200,000
Explanation:
Intelligence Incorporated:
Computer chips produces = 200
Selling price of each = $200
Total revenue = 200 × $200
= $40,000
Cost = $0
Value added = Total revenue - cost
= $40,000 - $0
= $40,000
Bell Computers:
Personal computers produces = 200
Selling price of each = $800
Total revenue = 200 × $800
= $160,000
Total Cost = cost of computer chips + cost of software
= 200 × $200 + 200 × $50
= $50,000
Value added = Total revenue - Total cost
= $160,000 - $50,000
= $110,000
Macrosoft:
software sold to bell computers
Selling price of each = $50
Total revenue = 200 × $50
= $10,000
Total Cost = $0
Value added = Total revenue - Total cost
= $10,000 - $0
= $10,000
PC Charlie:
Personal computers purchase = 200
Selling price of each = $1000
Total revenue = 200 × $1,000
= $200,000
Total Cost = cost of computers purchased from bell
= 200 × $800
= $160,000
Value added = Total revenue - Total cost
= $200,000 - $160,000
= $40,000
GDP by the value added method = value added by Intelligence Incorporated + value added by Bell Computers + value added by Macrosoft + value added by PC Charlie
= $40,000 + $110,000 + $10,000 + $40,000
= $200,000
