Question
Now suppose you manage a business that produces high end dog food. Your business produces 3,000 dog food cans per day, and can sell all
Now suppose you manage a business that produces high end dog food. Your business produces 3,000 dog food cans per day, and can sell all cans at $2.00/can regardless of how much is produced. Your firm currently employs twenty workers, each of whom earns $15/hour and work 8 hours per day. Inputs, like the meat for the food and the metal for the can, cost $1.00/can. Your overhead expenses, including rent, property taxes, insurance, etc., which does not vary with the number of cans produced, equals $250 per day.
a. (3) Calculate your company's current daily profit.
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