Assume a model economy consisting of four companies called A, B, C and D. Consider the following activities in this economy: . Company A produces 20 fertilizer machineries. The costs per machine are: labor (wages) of 0.6 million and imported steel of 0.4 million. Company A sells 10 machines to Company B (a domestic fertilizer producer) and exports 5 machines to a foreign buyer at a price of 1.2 million per machine (including excise tax of 0.1 million per each of the 15 machines sold). Company B produces 10 ton of fertilizer using the machines, labor and raw material. A total of 1 million is paid to labor. The raw materials used are worth 4 million. The raw materials are drawn from the company's existing stock of raw materials. Government collects 1.5 million in income taxes from Company B employees. Company B sells all of the fertilizer (10 tons) to Company C for a total price of 4 million. Company C produces oranges using the fertilizer and labor. The total cost of labor is 0.8m. Company C sells the oranges to a retailer (Company D) for 6 million. Total proceeds collected by D from sale of oranges by its retail outlets is 13 million. Of these, 4 million is collected from government agencies and the other 9 million from private customers. In addition to 6 million paid to purchase oranges, Company D pays 1.5 million in labor cost. Workers in the retail sector (company D) receive government transfers worth 1.5 million.