A
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Bach’s Music Store |
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Resources created from selling goods and services: |
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|
Musical instruments |
$8,000 |
|
|
Sheet music |
1,400 |
|
|
Repair of instruments |
2,200 |
|
|
Total resources created |
$11,600 |
|
|
Resources consumed: |
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Cost of instruments sold |
4,300 |
|
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Cost of sheet music sold |
870 |
|
|
Rent |
650 |
|
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Supplies used |
250 |
|
|
Advertising |
300 |
|
|
Utilities |
200 |
|
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Miscellaneous |
180 |
|
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Total resources consumed |
6,750 |
|
|
Profit |
$4,850 |
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B. The value created by a transformation of resources is the difference between the total price of the goods and services sold and the total cost of the resources consumed in producing these goods and services. This difference is profit for the seller.