Lux produced 600 cars in the 4th quarter of 2015

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Question: Lux produced 600 cars in the 4th quarter of 2015 They have 2 production costs: labor and intermed…
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They have 2 production costs: labor and intermediate goods

Workers are paid $60/hr, total hours employed are 12,000

Intermediate goods are bought from $5,000/car from Eng.

Eng’s only input is labor which costs 190,000 total.

In the 4th quarter, Lux sold 250 cars at $8,000.

What was Lux and Eng’s total contribution to National Income in
the 4th quarter?

A) 2,170,000

B) 4,170,000

C) 3,720,000

D) 5,400,000

Please also provide explanation also.

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