Soap

A.C. = w₀L_hS_f Labour ✦187 Shadow wage w₀ ✦16 an hour × L_h 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 ✦1,042 Coconut Oil: 500 kg × $1,100/t × r 1.5 × border 1.03 × λ 1.00 = ✦848 Palm Oil: 250 kg × $450/t × r 1.5 × border 1.05 × λ 1.00 = ✦178 Salt: 200 kg × $35/t × r 1.5 × border 1.50 × λ 1.00 = ✦15.8 + (D + M_o)α_e Capital ✦218 Depreciation and maintenance ✦150 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 = ✦1,467

A.V. = rP*_world Accounted value ✦1,924 per tonne World price $1,250 per tonne plus freight and insurance 2.6% = P* $1,283 × 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. = ✦1,924

Revenue = A.V. × Q Accounted revenue ✦189 m p.a. Domestic: 98,350 t × ✦1,924 = ✦189 m = ✦189 m

Surplus = (A.V. − A.C.) × Q − levies Accounted surplus ✦45 m p.a. Revenue ✦189 m − cost ✦1,467 × 98,350 t = ✦44.9 m Distributed 40% to reinvestment, 20% to the municipal aggregate and 40% swept to the Treasury. = ✦45 m