Enchante Inc., a designer clothing company buys $400 worth of silk from a silk trader, and $30 worth of accessories from AccessoriesRUs to produce each dress. If the value-added by Enchante is equal to $200, then according to the value-added approach, the price of the designer dress should be: a $200. b $600 c $230. d $630. e $830.

Question

Business

Layne Hendricks

10 January, 15:53

Enchante Inc., a designer clothing company buys $400 worth of silk from a silk trader, and $30 worth of accessories from AccessoriesRUs to produce each dress. If the value-added by Enchante is equal to $200, then according to the value-added approach, the price of the designer dress should be: a $200. b $600 c $230. d $630. e $830.

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Zoe Moore · Answer 1

d $630

Explanation:

Value added approach is a strategy for pricing a product which consider all the costs incurred and and all other factors which can effect the price of the product like how customer sees this product and how much he/she is willing to pay for this product etc.

Price of Designer dress = All cost incurred + Value added to the product

Price of Designer dress = (400 + 30) + 200 = $630