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Domestic Income 10,000. Rent 200. Compensation of employees 1,000. Mixed Income 2,000. Profit 1,500. Calculate Operating surplus from above information.?
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Domestic Income 10,000. Rent 200. Compensation of employees 1,000. Mix...
Operating Surplus Calculation
- Operating surplus is calculated by subtracting all factor payments from domestic income.
- Factor payments include rent, compensation of employees, and mixed income.
- Domestic income = 10,000
- Rent = 200
- Compensation of employees = 1,000
- Mixed income = 2,000
- Factor payments = 200 + 1,000 + 2,000 = 3,200
- Operating surplus = 10,000 - 3,200
- Operating surplus = 6,800
Explanation
Operating surplus is a measure of the income generated by the production process after all factor payments are made. It represents the income earned by the owners of the factors of production, including the owners of capital and land. In this case, the operating surplus is calculated by subtracting rent, compensation of employees, and mixed income from domestic income.
Domestic income is the total income generated by all factors of production within a country's borders. In this case, it is 10,000. Rent is the payment made to the owners of land for the use of their property. It is 200 in this case. Compensation of employees is the payment made to workers for their labor. It is 1,000 in this case. Mixed income is the income earned by self-employed individuals, such as small business owners or farmers. It is 2,000 in this case.
Factor payments are the sum of rent, compensation of employees, and mixed income. In this case, they add up to 3,200. Operating surplus is calculated by subtracting factor payments from domestic income. The result is 6,800, which represents the income earned by the owners of capital and land in the production process.
Community Answer
Domestic Income 10,000. Rent 200. Compensation of employees 1,000. Mix...
Operating surplus = domestic income - COE - mixed income
=10000 - 2000 - 1000
= 7000
=10000 - 2000 - 1000
= 7000
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Domestic Income 10,000. Rent 200. Compensation of employees 1,000. Mixed Income 2,000. Profit 1,500. Calculate Operating surplus from above information.?
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Domestic Income 10,000. Rent 200. Compensation of employees 1,000. Mixed Income 2,000. Profit 1,500. Calculate Operating surplus from above information.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Domestic Income 10,000. Rent 200. Compensation of employees 1,000. Mixed Income 2,000. Profit 1,500. Calculate Operating surplus from above information.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Domestic Income 10,000. Rent 200. Compensation of employees 1,000. Mixed Income 2,000. Profit 1,500. Calculate Operating surplus from above information.?.
Domestic Income 10,000. Rent 200. Compensation of employees 1,000. Mixed Income 2,000. Profit 1,500. Calculate Operating surplus from above information.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Domestic Income 10,000. Rent 200. Compensation of employees 1,000. Mixed Income 2,000. Profit 1,500. Calculate Operating surplus from above information.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Domestic Income 10,000. Rent 200. Compensation of employees 1,000. Mixed Income 2,000. Profit 1,500. Calculate Operating surplus from above information.?.
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