I have been asked this question: "Folt Industries in 2017: It sold 1000 in sweaters, it imported 200 in wool from abroad, and purchased 200 in wool from domestic suppliers, it purchased a sewing machine for 300 that deprecated by 25 in that year. It paid 600 in wages. What was Folt Industries value added in 2017?"
Now, I am thinking that to calculate this I just take the value of sales (1000), and subtract the money they spent on intermediate goods (200 + 250), so would their value added be 550 total? Or am I missing something.