Alejandro Scoobertini owns a store specializing in soccer jerseys. In 2008, he purchased $150,000 worth of jerseys from manufacturers, employed one worker for $40,000, purchased $20,000 worth of supplies from an office supply store, and sold jerseys for $280,000. Based on this information, what was the value added at Alejandro's store in 2008?

a) $70,000

b) $110,000

c) $280,000

d) $490,000

Option (a) is correct.

Explanation:

Given that,

Purchased jerseys from manufacturers = $150,000

Salary of worker = $40,000

Purchased supplies from an office supply store = $20,000

Sold jerseys = $280,000

Value added at Alejandro's store in 2008:

= Amount for which jerseys sold - Purchased jerseys from manufacturers - Salary of worker - Purchased supplies from an office supply store

= $280,000 - $150,000 - $40,000 - $20,000

= $70,000