Alternate racial traits aren't traits

Alternate racial traits such as those listed in the descriptions of half-orcs and humans (for example, acute darkvision and adoptive parentage, respectively) are specific and unique to those races and different from the traits the GM usually allows a character to get two of.

Some of those traits are race traits, usually restricted to certain races. The FAQ is clarifying that, for example, a half-orc can pick half-orc and human race traits (although usually only one race trait per category can usually be selected; see Restrictions on Trait Selection). For example, a half-orc can pick the trait Almost Human (a half-orc racial trait) or Aspiring Bard (a human racial trait).

(Just in case, note that a member of a race only has available its race's racial traits to replace with alternate racial traits. That means, for example, a half-orc can't replace the human racial trait bonus feat with the alternate racial trait adoptive parentage because the half-orc just doesn't have the racial trait bonus feat. The FAQ's and so on could mean that were a racial trait shared by members of the half-whatever and whatever race, such a racial trait could possibly be replaced with an alternate racial trait that replaced such a racial trait from either the half-whatever side or the whatever side, but the GM must decide if the FAQ is, in fact, being that inclusive. Also, as of this writing, no such shared trait exists.)

You get the full amount of reduction

So:

1) X2 X2 is usually only X3 in Pathfinder, because most of the time multipliers stack additively.

2) This doesn't apply here because there's no rolling involved, luckily. It would apply to crafting mundane items, and that gets weird fast, but we'll ignore that.

So:

1,000 a day, base.

1/2 time from Master Smith is effectively X2

Valet Familiar is X2

+5 DC is effectively X2

Arcane Builder is 25% faster, which is effectively X1.25

Altogether that's 10,000 gp/day.

Now, we still need to figure out that favored class bonus. I left it til now because when you apply it might seem like it matters. Obviously, if you apply it first then you make an extra 2000 gp/day, but it seems at first like if you apply it last you'd only make an extra 200 gp/day. Fortunately, this is not the case. All of the abilities you are using to multiply things increase or decrease stuff with no reference to the base amount produced. This means that all gp crafting stuff needs to be modified this way, so that 200 gp would need to be modified by each wealth increasing thing, resulting in the 12,000 gp total.