Question

Find Net Value Added at MP

| (i)Depreciation | 700 |
| (ii) Output sold ( units) | 900 |
| (iii) Price per unit of output | 40 |
| (iv) Closing Stock | 1000 |
| (v) Opening Stock | 800 |
| (vi) Sales Tax | 3000 |
| (vii) Intermediate cost | 20,000 |

Answer 1

GVOmp = sales + change in stock

= (900 x 40) + (1000 – 800)

= 36000 + 200

GVOmp =36200

NVAmp = GVOmp – Intermediate consumption – depreciation

= 36200 – 20000 – 700

NVAmp = 15500