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What is the definition of valued-added

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Scott is a small wooden toy producer, and he has a small factory in Bright. He sells his toys to the Kmart stores and Kmart re-pack these toys and sells to the final consumers for $25 per toy. Scott spent $5000 last month on supplies and made 500 toys. He sold all 500 toys to the Kmart stores at $18 per toy.

1. What is the definition of valued-added?

2. What is Scott's cost per toy?

3. What is Scott's valued-added per toy?

4. What is the total value-addition by Scott?

5. What is the contribution to the GDP according to the above information?

Reference no: EM132606691

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