The Compagnie Naturelle sells mounted butterflies, using butterfly bait it buys from another firm for $20,000. It pays its workers $35,000, pays $1,000 in taxes, and has profits of $3,000.

What is its value added?

a.$3,000

b.$59,000

c.$19,000

d.$39,000

Question

Business

Wyatt Marshall

22 April, 05:14

The Compagnie Naturelle sells mounted butterflies, using butterfly bait it buys from another firm for $20,000. It pays its workers $35,000, pays $1,000 in taxes, and has profits of $3,000.

What is its value added?

a.$3,000

b.$59,000

c.$19,000

d.$39,000

+3

Answers (1)

Know the Answer?

Willie Frost · Answer 1

d.$39,000

Explanation:

Data provided as per the question is given below

Pay to workers = $35,000

Pay in taxes = $1,000

Profits = $3,000

The calculation of value added is shown below:-

Value added = Pay to workers + Pay in taxes + Profits

= $35,000 + $1,000 + $3,000

= $39,000

Therefore we are not considering $20,000 because it spent on intermediate goods.

The Compagnie Naturelle sells mounted butterflies, using butterfly bait it buys from another firm for $20,000. It pays its workers $35,000, pays $1,000 in taxes, and has profits of $3,000.What is its value added?a.$3,000b.$59,000c.$19,000d.$39,000

The Compagnie Naturelle sells mounted butterflies, using butterfly bait it buys from another firm for $20,000. It pays its workers $35,000, pays $1,000 in taxes, and has profits of $3,000.

What is its value added?

a.$3,000

b.$59,000

c.$19,000

d.$39,000