Confectionery

A.C. = w₀L_hS_f Labour ✦375 Shadow wage w₀ ✦16 an hour × L_h 10 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 ✦324 Cacao: 50 kg × $1,500/t × r 1.5 × border 0.98 × λ 1.00 = ✦110 Milk: 100 kg × $190/t × r 1.5 × border 1.11 × λ 1.00 = ✦31.8 Sugar: 600 kg × $225/t × r 1.5 × border 0.90 × λ 1.00 = ✦182 + (D + M_o)α_e Capital ✦435 Depreciation and maintenance ✦300 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 ✦45 E 900 kWh per tonne × p_e ✦0.05 per kWh = ✦1,179

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 ✦536 m p.a. Domestic: 140,500 t × ✦3,818 = ✦536 m = ✦536 m

Surplus = (A.V. − A.C.) × Q − levies Accounted surplus ✦371 m p.a. Revenue ✦536 m − cost ✦1,179 × 140,500 t = ✦371 m Distributed 40% to reinvestment, 20% to the municipal aggregate and 40% swept to the Treasury. = ✦371 m