A farmer grows wheat and sells it to the miller for $84. The miller turns the wheat into flour and sells it to the baker for $109. The baker turns the flour into bread and sells it to consumers for $189.What is the value added by the baker

Value added = $80

Explanation:

Use the below formula to find the value added by the baker:

Baker buys the flour at the cost of = $109

Baker sells it to the cosmumer and receives = $189

The value added can be calculated by subtracting the cost from the receipts.

Value added  =Receipts from the sale - Cost

Value = 189 - 109

Value added = $80

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