Question # 02

Use the information given and show in a table format how value added method is used to

Calculate GDP.

1. A forester chops down 200 trees and sells them @ N$50 each to the coal factory on a farm. The coal factory processes these trees into coals and sells the coal @ N$20 000 to the coal wholesalers. The coal wholesalers goes to the market and sell 500 bags of coals @N$100 each to pick n Pay. Pick n Pay sells the 500 bags of coals @ N$150 each to its customers. According to this example, how much value added do the coals contribute to the GDP?