Question

a firm makes and sells jam using fruit it buys from another firm for 80,000 rs.it pays it workers 50,000 rs , pays rs 20,000 in taxes and has profits of the rs 40,000 what is its value added?​

Answer 1

Answer:

80,000➕50,000➕20,000➕40,000.

value is 190,000.

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Answer 2

Answer: 1,10,000

Explanation:

Fruits bought from other firms 80,000

Wages paid to workers 50,000

Taxes paid 20,000

Profit 40,000

Profit = Sales revenue – wages paid – Taxes – Intermediate Consumption

40,000 = Sales Revenue – 50,000 – 20,000 – 80,000

Sales revenue = 40000 + 50000 + 20000 + 80000 = Rs. 1,90,000 Value Added = Sales – Intermediate Consumption = 190000 – 80000 = Rs. 110000 Hence, Value Added = Rs. 1,10,000.