Military Vehicles

A.C. = w₀L_hS_f Labour ✦74,910 Shadow wage w₀ ✦16 an hour × L_h 2,000 hours per unit × 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 ✦6,172 Rubber: 500 kg × $850/t × r 1.5 × border 0.97 × λ 1.00 = ✦616 Steel: 12 t × $332/t × r 1.5 × border 0.93 × λ 1.00 = ✦5,556 + (D + M_o)α_e Capital ✦174,000 Depreciation and maintenance ✦120,000 per unit × 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 ✦7,500 E 150,000 kWh per unit × p_e ✦0.05 per kWh = ✦262,600

A.V. = rP*_world Accounted value ✦1.17 m per unit World price $750,000 per unit plus freight and insurance 4% = P* $780,000 × 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. = ✦1.17 m

Revenue = A.V. × Q Accounted revenue ✦3.29 bn p.a. Domestic: 2,810 units × ✦1.17 m = ✦3.29 bn = ✦3.29 bn

Surplus = (A.V. − A.C.) × Q − levies Accounted surplus ✦2.55 bn p.a. Revenue ✦3.29 bn − cost ✦262,600 × 2,810 units = ✦2.55 bn Distributed 40% to reinvestment, 20% to the municipal aggregate and 40% swept to the Treasury. = ✦2.55 bn