Question

Alejandro Scoobertini owns a store specializing in soccer jerseys. One year, he purchased $150,000 worth of jerseys from manufacturers and later that year, sold the jerseys for $280,000. Based on this information, what was the value added at Alejandro's store?

Answer 1

Answer:

Based on this information, the value added at Alejandro's store was:

$130,000.

Explanation:

a) Data and Calculations:

Original value of purchased jerseys = $150,000

Value of sold jerseys = $280,000

Valued added = $130,000 ($280,000 - $150,000)

b) The value added by Alejandro is the extra value or enhancement of $130,000, which will go the Alejandro in form of profits, created over and above the original value of $150,000, which can be applied to the products, services, companies, management, and other areas of business.  This enhancement may be as a result of the change of the location of the soccer jerseys from the place of purchase to the place of sale.