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Calculate operating surplus from the following COMPENSATION OF EMPLOYEES=110 MIXED INCOME=500 NET Indirect TAX=150 DEPRECIATION=50 NET FACTOR INCOME FROM ABROAD=155 INCOME FROM ENTREPRENUERSHIP AND REST OF THE WORLD =75 G.D.P at MP =1050 find out operating surplus?
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Calculate operating surplus from the following COMPENSATION OF EMPLOYE...
Operating Surplus Calculation:
Operating surplus is a measure of the income generated by the production process of an economy. It represents the surplus value created by businesses after deducting the costs of labor and capital.
To calculate operating surplus, we need to consider the following components:
1. Compensation of Employees: This refers to the total wages and salaries paid to employees in the economy. In this case, the compensation of employees is given as 110.
2. Mixed Income: This includes the income earned by self-employed individuals and unincorporated businesses. It represents the return on their labor and capital. Here, the mixed income is given as 500.
3. Net Indirect Tax: This represents the difference between indirect taxes paid by businesses and subsidies received. It is a component of operating surplus as it affects the profitability of businesses. The net indirect tax is given as 150.
4. Depreciation: Depreciation is the reduction in the value of fixed assets over time due to wear and tear. It is a non-cash expense that is deducted from the operating surplus. Here, the depreciation is given as 50.
5. Net Factor Income from Abroad: This refers to the income earned by domestic factors of production (labor and capital) from abroad, minus the income earned by foreign factors of production in the domestic economy. It is included in the operating surplus as it represents the return on capital and labor. In this case, the net factor income from abroad is given as 155.
6. Income from Entrepreneurship and Rest of the World: This includes the income earned by entrepreneurs and the rest of the world. It represents the return on entrepreneurship and capital. Here, the income from entrepreneurship and rest of the world is given as 75.
Now, let's calculate the operating surplus:
Operating Surplus = Compensation of Employees + Mixed Income + Net Indirect Tax + Depreciation + Net Factor Income from Abroad + Income from Entrepreneurship and Rest of the World
Operating Surplus = 110 + 500 + 150 + 50 + 155 + 75
Operating Surplus = 1040
Operating Surplus = 1040
Therefore, the operating surplus in this case is 1040.
Operating surplus is a measure of the income generated by the production process of an economy. It represents the surplus value created by businesses after deducting the costs of labor and capital.
To calculate operating surplus, we need to consider the following components:
1. Compensation of Employees: This refers to the total wages and salaries paid to employees in the economy. In this case, the compensation of employees is given as 110.
2. Mixed Income: This includes the income earned by self-employed individuals and unincorporated businesses. It represents the return on their labor and capital. Here, the mixed income is given as 500.
3. Net Indirect Tax: This represents the difference between indirect taxes paid by businesses and subsidies received. It is a component of operating surplus as it affects the profitability of businesses. The net indirect tax is given as 150.
4. Depreciation: Depreciation is the reduction in the value of fixed assets over time due to wear and tear. It is a non-cash expense that is deducted from the operating surplus. Here, the depreciation is given as 50.
5. Net Factor Income from Abroad: This refers to the income earned by domestic factors of production (labor and capital) from abroad, minus the income earned by foreign factors of production in the domestic economy. It is included in the operating surplus as it represents the return on capital and labor. In this case, the net factor income from abroad is given as 155.
6. Income from Entrepreneurship and Rest of the World: This includes the income earned by entrepreneurs and the rest of the world. It represents the return on entrepreneurship and capital. Here, the income from entrepreneurship and rest of the world is given as 75.
Now, let's calculate the operating surplus:
Operating Surplus = Compensation of Employees + Mixed Income + Net Indirect Tax + Depreciation + Net Factor Income from Abroad + Income from Entrepreneurship and Rest of the World
Operating Surplus = 110 + 500 + 150 + 50 + 155 + 75
Operating Surplus = 1040
Operating Surplus = 1040
Therefore, the operating surplus in this case is 1040.
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Calculate operating surplus from the following COMPENSATION OF EMPLOYEES=110 MIXED INCOME=500 NET Indirect TAX=150 DEPRECIATION=50 NET FACTOR INCOME FROM ABROAD=155 INCOME FROM ENTREPRENUERSHIP AND REST OF THE WORLD =75 G.D.P at MP =1050 find out operating surplus?
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Calculate operating surplus from the following COMPENSATION OF EMPLOYEES=110 MIXED INCOME=500 NET Indirect TAX=150 DEPRECIATION=50 NET FACTOR INCOME FROM ABROAD=155 INCOME FROM ENTREPRENUERSHIP AND REST OF THE WORLD =75 G.D.P at MP =1050 find out operating surplus? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Calculate operating surplus from the following COMPENSATION OF EMPLOYEES=110 MIXED INCOME=500 NET Indirect TAX=150 DEPRECIATION=50 NET FACTOR INCOME FROM ABROAD=155 INCOME FROM ENTREPRENUERSHIP AND REST OF THE WORLD =75 G.D.P at MP =1050 find out operating surplus? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate operating surplus from the following COMPENSATION OF EMPLOYEES=110 MIXED INCOME=500 NET Indirect TAX=150 DEPRECIATION=50 NET FACTOR INCOME FROM ABROAD=155 INCOME FROM ENTREPRENUERSHIP AND REST OF THE WORLD =75 G.D.P at MP =1050 find out operating surplus?.
Calculate operating surplus from the following COMPENSATION OF EMPLOYEES=110 MIXED INCOME=500 NET Indirect TAX=150 DEPRECIATION=50 NET FACTOR INCOME FROM ABROAD=155 INCOME FROM ENTREPRENUERSHIP AND REST OF THE WORLD =75 G.D.P at MP =1050 find out operating surplus? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Calculate operating surplus from the following COMPENSATION OF EMPLOYEES=110 MIXED INCOME=500 NET Indirect TAX=150 DEPRECIATION=50 NET FACTOR INCOME FROM ABROAD=155 INCOME FROM ENTREPRENUERSHIP AND REST OF THE WORLD =75 G.D.P at MP =1050 find out operating surplus? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate operating surplus from the following COMPENSATION OF EMPLOYEES=110 MIXED INCOME=500 NET Indirect TAX=150 DEPRECIATION=50 NET FACTOR INCOME FROM ABROAD=155 INCOME FROM ENTREPRENUERSHIP AND REST OF THE WORLD =75 G.D.P at MP =1050 find out operating surplus?.
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