Bay Oil

A.C. = w₀L_hS_f Labour ✦22,150 Shadow wage w₀ ✦16 an hour × L_h 750 hours per tonne × skill factor S_f 1.85 S_f for agriculture: training ✦30,000 against ✦45,000, queue 10 hours against 48 + Σ q_iP_irλ_i Materials ✦0 A raw material, with no recipe inputs. + (D + M_o)α_e Capital ✦2,610 Depreciation and maintenance ✦1,800 per tonne × financing 1.45 × waste factor α_e 1.00 Financing is interest at 6% on equipment's average value over a 15-year life. α_e is 1.00 when maintenance hours and defects are on target. + Ep_e Energy ✦150 E 3,000 kWh per tonne × p_e ✦0.05 per kWh = ✦24,910

A.V. = rP*_world Accounted value ✦29,670 per tonne World price $20,000 per tonne less freight and insurance 1.1% = P* $19,780 × r 1.5 crowns per US dollar Export parity: the price at the Commonwealth border for a good it sells abroad. Observed abroad, not calculated: a wasteful producer raises only its own cost. = ✦29,670

Revenue = A.V. × Q Accounted revenue ✦50 m p.a. Domestic: 281 t × ✦29,670 = ✦8.34 m Exports: 1,405 t × ✦29,670 = ✦41.7 m = ✦50 m

Surplus = (A.V. − A.C.) × Q − levies Accounted surplus ✦1.78 m p.a. Revenue ✦50 m − cost ✦24,910 × 1,686 t = ✦8.02 m Export charges ✦6.25 m: 15% of export revenue (federal levy and permit fee) Distributed 40% to reinvestment, 20% to the municipal aggregate and 40% swept to the Treasury. = ✦1.78 m