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Answer :
The value added for each company is 2 million, 35 million, 1.2 million, and 5.5 million, respectively.
How to solve
The value added by a company is the difference between the value of its output and the value of its inputs. In this case, the inputs are the labor, raw materials, and imported steel used to produce the fertilizer machineries, fertilizer, and oranges.
The outputs are the fertilizer machineries, fertilizer, and oranges themselves.
Let's calculate the value added for each company:
Company A: The value of the output is 15 * 1.2 million = 18 million. The value of the inputs is 0.6 million * 20 + 0.4 million * 20 = 16 million. Therefore, the value added by Company A is 18 million - 16 million = 2 million.
Company B: The value of the output is 10 ton * 4 million/ton = 40 million. The value of the inputs is 1 million + 4 million = 5 million. Therefore, the value added by Company B is 40 million - 5 million = 35 million.
Company C: The value of the output is 6 million. The value of the inputs is 4 million + 0.8 million = 4.8 million. Therefore, the value added by Company C is 6 million - 4.8 million = 1.2 million.
Company D: The value of the output is 13 million. The value of the inputs is 6 million + 1.5 million = 7.5 million. Therefore, the value added by Company D is 13 million - 7.5 million = 5.5 million.
Therefore, the value added for each company is 2 million, 35 million, 1.2 million, and 5.5 million, respectively.
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