Wicker Furniture

A.C. = w₀L_hS_f Labour ✦6,477 Shadow wage w₀ ✦16 an hour × L_h 150 hours per tonne × skill factor S_f 2.70 S_f for trades: training ✦40,000 against ✦45,000, queue 36 hours against 48 + Σ q_iP_irλ_i Materials ✦1,400 Wicker & Cane: 1.2 t × $750/t × r 1.5 × border 1.04 × λ 1.00 = ✦1,399 + (D + M_o)α_e Capital ✦261 Depreciation and maintenance ✦180 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 ✦10 E 200 kWh per tonne × p_e ✦0.05 per kWh = ✦8,147

A.V. = rP*_world Accounted value ✦11,390 per tonne World price $7,500 per tonne plus freight and insurance 1.27% = P* $7,597 × 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. = ✦11,390

Revenue = A.V. × Q Accounted revenue ✦192 m p.a. Domestic: 16,860 t × ✦11,390 = ✦192 m = ✦192 m

Surplus = (A.V. − A.C.) × Q − levies Accounted surplus ✦54.7 m p.a. Revenue ✦192 m − cost ✦8,147 × 16,860 t = ✦54.7 m Distributed 40% to reinvestment, 20% to the municipal aggregate and 40% swept to the Treasury. = ✦54.7 m