Wine

A.C. = w₀L_hS_f Labour ✦468 Shadow wage w₀ ✦16 an hour × L_h 12.5 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 ✦1,271 Cork: 5 kg × $1,500/t × r 1.5 × border 1.02 × λ 1.00 = ✦11.5 Glass: 600 kg × $315/t × r 1.5 × border 0.93 × λ 1.00 = ✦263 Grapes: 1.4 t × $450/t × r 1.5 × border 1.05 × λ 1.00 = ✦997 + (D + M_o)α_e Capital ✦348 Depreciation and maintenance ✦240 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 ✦15 E 300 kWh per tonne × p_e ✦0.05 per kWh = ✦2,102

A.V. = rP*_world Accounted value ✦2,681 per tonne World price $1,750 per tonne plus freight and insurance 2.14% = P* $1,787 × 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. = ✦2,681

Revenue = A.V. × Q Accounted revenue ✦753 m p.a. Domestic: 281,000 t × ✦2,681 = ✦753 m = ✦753 m

Surplus = (A.V. − A.C.) × Q − levies Accounted surplus ✦163 m p.a. Revenue ✦753 m − cost ✦2,102 × 281,000 t = ✦163 m Distributed 40% to reinvestment, 20% to the municipal aggregate and 40% swept to the Treasury. = ✦163 m