You manage the Ohio production facility for Energizer batteries. One of the major inputs for some of your batteries is silver. Energizer is currently one month into a yearlong contract with its suppliers. The contract enables you to buy up to 1000 ounces of silver a day for $30 an ounce. The current market price of silver is $35 an ounce.

To produce a package of batteries requires a tenth of an ounce of silver. It also requires other materials and labor inputs that cost $2.50 per package in total. Energizer's listed wholesale price for a package of batteries, which is the price at which you must sell, is $5.75 per package.

How many packages of batteries should you produce per day? How much do you make in profits?