Setup Corporation buys $100,000 of sand, rock, and cement to produce ready-mix concrete. It sells 10,000 cubic yards of concrete at $30 a cubic yard. The value added by Setup Corporation is:
30*10,000=300,000$ of sales (since you add 30 dollars for each cubic yard). The value added is the amount of sales - the amount spent = 300,000-100,000=200,000