Calculating GDP Assume a country with only three rms. Firm A produces milk, rm B produces cheese, and rm C produces pizza. In a given year: 0 Firm A produces 30,000 gallons of milk, sells 20,000 gallons to rm B at $2 per gallon and sell 10,000 gallons to domestic consumers at $2 per gallon. Firm A pays $2,000 in wages to employees who are citizens. o Firm B produces 75,000 pounds of cheese, sells 25,000 pounds to Firm C at $4 per pound and sells 45,000 pounds at $4 per pound to domestic consumers, and stores 5,000 pounds as inventory. Firm B pays $3,000 in wages to employees who are all foreigners. o Firm C produces 80,000 pizzas and sells 50,000 pizzas to domesitic consumers at $8 per pizza, exports 20,000 pizzas at $8 per pizza, and stores 10,000 pizzas as inventory. Firm C pays $3,500 in wages to employees who are all citizens. (c) the income approach