Question

GeonHouses, a leading manufacturer and supplier of crockery, charges three dollars for each soup bowl. The cost of manufacturing each soup bowl is one dollar. In this scenario, the difference between the price GeonHouses charges per soup bowl and the cost of making it is referred to as _____.

Answer 1

The difference between the price that GeonHouses charges its customers and the cost of manufacturing a bowl of soup is C. captured value.

The captured value represents the difference between the $3 selling price and the $1 cost of manufacturing a bowl of soup for customers.

This captured value is also known as the gross profit.  Based on the gross profit, GeonHouses deduct its expenses and taxes to determine the actual net income.

The $2 difference is not an abstract, modified, or differentiation value.

Data and Calculations:

Selling price per bowl of soup = $3

Manufacturing cost per bowl = $1

Captured value = $2 ($3 - $1)

Thus, the $2 difference is a captured value for GeonHouses.

Learn more: brainly.com/question/21637154

Options for this question are:

A. abstract value

B. modified value

C. captured value

D. differentiation value