O-LevelCommerceProduction7100/12 · Oct/Nov 2011 · Q11 Mark

The diagram shows a wooden chair that sells for $20. Raw materials $3, distribution costs $5, manufacturing costs $4, profit $8. How much value was added to the raw materials to produce the wooden chair?

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A$4

B$9

C$17

D$23

✓ Correct answer

B: $9

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Topic: Production, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source: O-Level Commerce, Oct/Nov 2011 Paper 1 Variant 2, question 1.

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