question_answer

Calculate 'sales' from the following data:
(Rs in lakhs)
Intermediate costs	700
Consumption of fixed capital	80
Change in stock	(-) 50
Subsidy	60
Net value added at factor cost	1300
Exports	50

                                                           

Answer:

\[NV{{A}_{FC}}\] = Rs 1,300

\[GD{{P}_{MP}}\] = \[NV{{A}_{FC}}\] - Subsidies + Consumption of fixed capital \[=1,300-60+80=Rs.\text{ }1,320\]

Also, we know that:

\[GD{{P}_{MP}}\] = Sales + Change in stock - Intermediate Cost Sales = \[GD{{P}_{MP}}\] - Change in stock + Intermediate Cost

\[=1,320-(-50)+700\]

i.e. Sales = Rs 2,070 Lakhs.