Question

A farmer sold 100kg wheat grains at `10/kg to a miller. Miller converted 100kgs of wheat grains into 100kg flour and sold it at `12/kg. Find out the value of production by the miller?

Answer 1

profit from milling wheat into flour
Farmers who mill their grain usually find milling is more profitable than farming.

This page examines the profits that are possible for an enterprise that adds value to some of the farm's grain.

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No body represents this as:
free from omissions
free from errors
suitable for your use
nor as advice.
Your situation is different from anyone else's. Make informed decisions and if necessary get advice Caution: I would do careful planning before putting my hard-earned cash into any project, including one such as this. These figures are to give you the general idea rather than to indicate any profit you will make. They are rough figures based on real farmers' real figures. These farmers may
have advantages that you don't
be in different market niches even to their neighbors and
have different ways of working, living and handling their finances.

Answer 2

The value of production is given by the difference in prices.

The price of the wheat is :

100 × 10 = 1000

The price of the milled wheat is :

100 × 12 = 1200

The value of production of the miller is thus :

1200 - 1000 = 200