The Big Star company sells its products for $100,000; that it pays $30,000 for materials purchased from other firms, $20,000 for wages, $ 30,000 for rent, and $5,000 for interests to the lenders. The firm's value added is $30,000 $25,000 $50,000 $70,000

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
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Q)The Big Star company sells its products for $100,000; that it pays $30,000 for materials purchased from other firms, $20,000 for wages, $ 30,000 for rent, and $5,000 for interests to the lenders. The firm's value added is

  1. $30,000

  2. $25,000

  3. $50,000

  4. $70,000

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