Sure, let's break down the calculation of the value added by firms step-by-step using the provided data.
### Step 1: Calculate the Total Cost of Materials
First, we'll sum up the expenses related to materials and machinery. This includes purchases of raw material, import of raw material, and import of machinery.
[tex]\[
\text{Total Cost of Materials} = \text{Purchases of raw material} + \text{Import of raw material} + \text{Import of machines}
\][/tex]
Substituting the given values:
[tex]\[
\text{Total Cost of Materials} = 200 + 100 + 200 = 500
\][/tex]
So, the total cost of materials is 500.
### Step 2: Calculate the Change in Stock
Next, we'll determine the change in stock. This is obtained by subtracting the opening stock from the closing stock.
[tex]\[
\text{Change in Stock} = \text{Closing stock} - \text{Opening stock}
\][/tex]
Substituting the given values:
[tex]\[
\text{Change in Stock} = 40 - 10 = 30
\][/tex]
So, the change in stock is 30.
### Step 3: Calculate Value Added by the Firms
Finally, we calculate the value added by the firms. This is computed using the formula:
[tex]\[
\text{Value Added} = \text{Sales} + \text{Change in Stock} - \text{Total Cost of Materials}
\][/tex]
Substituting the calculated and given values:
[tex]\[
\text{Value Added} = 600 + 30 - 500 = 130
\][/tex]
So, the value added by the firms is 130.
### Summary
- Total Cost of Materials: 500
- Change in Stock: 30
- Value Added: 130
Thus, the value added by firms [tex]\( X \)[/tex] is [tex]\( 130 \)[/tex].
