Macroeconomics question on GDP production, income and profit!?!

[jazhunta]

A flour mill produces $1000 worth of flour, of which $700 goes to a bakery and $300 to consumers. A water supplier produces $300 worth of water, of which $200 goes to the bakery and $100 to consumers. The bakery produces $1500 worth of bread and sells all of it to consumers. The three companies pay wages as follows: the mill pays $400, the water supplier $200, and the bakery $200. There are no other costs of production.

a.	Calculate GDP based on the value of production.
b.	Calculate profits to the owners of each of the three companies (profit = revenue minus costs).
c.	Calculate GDP based on income.

 

[mmm4444bot]

A flour mill produces $1000 worth of flour, of which $700 goes to a bakery and $300 to consumers. A water supplier produces $300 worth of water, of which $200 goes to the bakery and $100 to consumers. The bakery produces $1500 worth of bread and sells all of it to consumers. The three companies pay wages as follows: the mill pays $400, the water supplier $200, and the bakery $200. There are no other costs of production.

a.	Calculate GDP based on the value of production.
b.	Calculate profits to the owners of each of the three companies (profit = revenue minus costs).
c.	Calculate GDP based on income.

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[jazhunta]

Hello jazhunta:

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Please read this summary of our posting guidelines.

Thank you :cool:

Hi mmm4444bot
Im 19 and currently in a degree program for accounting and i needed help on doing this question. I think the formula im suppose to use is Total output (goods and services) by types of activities in market prices -
intermediary consumption for generating goods and services
=
GDP at market prices
+
taxes on products and import
-
subsidies on products
=
Total GDP at market prices

But i don't really know where to sub in what numbers for question A) and in order to do question B) and C) i think im suppose to have question A) done