Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
QUESTION 2 An Australian car manufacturer buys components from Japan for $10,000
QUESTION 2 An Australian car manufacturer buys components from Japan for $10,000. The car manufacturer uses half of those components in the production of a car, and stores the rest of the components. The car is sold to a local resident for $20,000. Then: The value added of the car manufacturer increases by $15,000 and its profits increase by $15,000. The value added of the car manufacturer increases by $10,000 and its profits increase by $10,000. The value added of the car manufacturer increases by $15,000 and its profits increase by $10,000. The value added of the car manufacturer increases by $20,000 and its profits increase by $15,000.
Expert Solution
Value added can be defined as the difference between a product's selling price and the direct and indirect input used in making that product.in the given case value added=20000-5000=$15000.
Answer is a i.e.. the value added of the car manufacturer increases by $15000 and its profit increase by $15000
As he only uses half of the component worth $5000 and stores the rest of the components,
Archived Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
For ready-to-submit work, please order a fresh solution below.
