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Kevin Peters owns a bakery chain that procures eggs from a poultry farm at $3 per dozen. The bakery uses the eggs to make cakes,
Kevin Peters owns a bakery chain that procures eggs from a poultry farm at $3 per dozen. The bakery uses the eggs to make cakes, which it sells to a distributor for $8 per pound. The distributor sells the cake to a supermarket for $10 per pound, which sells it to customers for $15 per pound. Which of the following is true?
a. The value added by the distributor is $10.
b. The supermarket added more value than the bakery.
c. The value added by the supermarket is $2.
d. The value added by Kevin Peters is $8.
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