7. ABC Computer Company has a $20 million factory in Silicon Valley in which in builds computer components. During the current year, ABC's costs are labor (wages) of $0.8 million; interest on debt of $0.1 million; and taxes of $0.2 milion ABC sells all its output to XYZ Supercomputer for $1.8 million Using ABC's components, XYZ builds four supercomputers at a cost of $0.950 million each, which comes from $0.450 million worth of components, $0.3 million in labor costs, and $0.2 million in taxes per computer. XYZ has a $30 million factory. XYZ sells three of the supercomputers to other businesses for $1.4 million each. At year's end, it had not sold the fourth. The unsold computer is carried on XYZ's books as a $0.950 million increase in inventory. According to the product approach, the total GDP contribution of these companies is $ million According to the expenditure approach, since the three supercomputers are sold to businesses, XYZ's sales are counted as (1) The unsold computer is Thus the total contribution to GDP, using the expenditure approach, is $ million According to the income approach, the contributions of these companies would be counted as follows Wages to ABC employees $ Wages to XYZ employees $ million million. Profit of ABC $ Profit of XYZ = $ million million Taxes paid by ABC = $ Taxes paid by XYZ million. million million. Interest paid by ABC-S Interest paid by XYZ-$ million Thus the total contribution to GDP, using the income approach is $ million (1) O investment (2) O not counted because it has not been sold O government spending O consumption O net exports O counted as inventory investment O counted as consumption by the firm