Goat Cheese

A.C. = w₀L_hS_f Labour ✦1,498 Shadow wage w₀ ✦16 an hour × L_h 40 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 ✦2,544 Milk: 8 t × $190/t × r 1.5 × border 1.11 × λ 1.00 = ✦2,542 Salt: 20 kg × $35/t × r 1.5 × border 1.50 × λ 1.00 = ✦1.57 + (D + M_o)α_e Capital ✦696 Depreciation and maintenance ✦480 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 ✦35 E 700 kWh per tonne × p_e ✦0.05 per kWh = ✦4,774

A.V. = rP*_world Accounted value ✦6,848 per tonne World price $4,500 per tonne plus freight and insurance 1.44% = P* $4,563 × 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. = ✦6,848

Revenue = A.V. × Q Accounted revenue ✦77 m p.a. Domestic: 11,240 t × ✦6,848 = ✦77 m = ✦77 m

Surplus = (A.V. − A.C.) × Q − levies Accounted surplus ✦23.3 m p.a. Revenue ✦77 m − cost ✦4,774 × 11,240 t = ✦23.3 m Distributed 40% to reinvestment, 20% to the municipal aggregate and 40% swept to the Treasury. = ✦23.3 m