Tea

A.C. = w₀L_hS_f Labour ✦1,181 Shadow wage w₀ ✦16 an hour × L_h 40 hours per tonne × skill factor S_f 1.85 S_f for agriculture: training ✦30,000 against ✦45,000, queue 10 hours against 48 + Σ q_iP_irλ_i Materials ✦0 A raw material, with no recipe inputs. + (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 = ✦1,419

A.V. = rP*_world Accounted value ✦2,198 per tonne World price $1,500 per tonne less freight and insurance 2.33% = P* $1,465 × r 1.5 crowns per US dollar Export parity: the price at the Commonwealth border for a good it sells abroad. Observed abroad, not calculated: a wasteful producer raises only its own cost. = ✦2,198

Revenue = A.V. × Q Accounted revenue ✦401 m p.a. Domestic: 140,500 t × ✦2,198 = ✦309 m Exports: 42,150 t × ✦2,198 = ✦92.6 m = ✦401 m

Surplus = (A.V. − A.C.) × Q − levies Accounted surplus ✦128 m p.a. Revenue ✦401 m − cost ✦1,419 × 182,700 t = ✦142 m Export charges ✦13.9 m: 15% of export revenue (federal levy and permit fee) Distributed 40% to reinvestment, 20% to the municipal aggregate and 40% swept to the Treasury. = ✦128 m