Butter

A.C. = w₀L_hS_f Labour ✦281 Shadow wage w₀ ✦16 an hour × L_h 7.5 hours per tonne × skill factor S_f 2.34 S_f for industry: training ✦45,000 against ✦45,000, queue 20 hours against 48 + Σ q_iP_irλ_i Materials ✦0 A joint product: its inputs are shared with a main product and not charged here. Milk: 20 t × $190/t × r 1.5 × border 1.11 × λ 1.00 + (D + M_o)α_e Capital ✦348 Depreciation and maintenance ✦240 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 ✦20 E 400 kWh per tonne × p_e ✦0.05 per kWh = ✦649

A.V. = rP*_world Accounted value ✦3,818 per tonne World price $2,500 per tonne plus freight and insurance 1.8% = P* $2,545 × r 1.5 crowns per US dollar Import parity: the price at the Commonwealth border for a good it could otherwise import. Observed abroad, not calculated: a wasteful producer raises only its own cost. = ✦3,818

Revenue = A.V. × Q Accounted revenue ✦376 m p.a. Domestic: 98,350 t × ✦3,818 = ✦376 m = ✦376 m

Surplus = (A.V. − A.C.) × Q − levies Accounted surplus ✦312 m p.a. Revenue ✦376 m − cost ✦649 × 98,350 t = ✦312 m Distributed 40% to reinvestment, 20% to the municipal aggregate and 40% swept to the Treasury. = ✦312 m