Donald is a small-scale orange juice producer, and he has a small orange juice producing factory in Mildura. He purchases oranges and other ingredients from shops in the local area. He sells all the produced juice bottles to the Mildura superstore for $7 per juice bottle; however, the superstore sells these bottles for the final consumer for $8.50. Donald spent $4200 last quarter and made 1000 juice bottles. (2 marks) a) What is the definition of value-added? (0.4 marks) b) What is Donald’s cost per bottle of juice? (0.4 marks), c) What is Donald’s value-added per bottle of juice? (0.4 marks) d) What is the total value-addition by Donald? (0.4 marks) e) What is the final contribution to the GDP from the orange juice according to the above information? (0.4 mark)
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Donald is a small-scale orange juice producer, and he has a small orange juice producing factory in Mildura. He purchases oranges and other ingredients from shops in the local area. He sells all the produced juice bottles to the Mildura superstore for $7 per juice bottle; however, the superstore sells these bottles for the final consumer for $8.50. Donald spent $4200 last quarter and made 1000 juice bottles. (2 marks)
a) What is the definition of value-added? (0.4 marks)
b) What is Donald’s cost per bottle of juice? (0.4 marks),
c) What is Donald’s value-added per bottle of juice? (0.4 marks)
d) What is the total value-addition by Donald? (0.4 marks)
e) What is the final contribution to the GDP from the orange juice according to the above information? (0.4 mark)
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