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HACTEHA [7]
3 years ago
11

A Virginia county is considering whether to pay $50,000 per year to lease a prisoner transfer facility in a prime location near

Washington, D.C. They estimate it will cost $50 per prisoner to process the paperwork at this new location. The county is paid a $75 commission for each new prisoner they process. What would be the county's annual profit if they were to process 4,000 prisoners per year at this new location
Business
1 answer:
Fudgin [204]3 years ago
3 0

Based on the information given  the county's annual profit if they were to process 4,000 prisoners per year at this new location is $50,000.

Annual profit=Total revenue-Total cost

Where:

Total revenue=(4,000×$75)=$300,000

Total cost=[(4,000×$50)+$50,000]=$250,000

Let plug in the formula

Annual profit=(4,000×$75)-[(4,000×$50)+$50,000]

Annual profit=$300,000-($200,000+$50,000)

Annual profit=$300,000-$250,000

Annual profit=$50,000

Inconclusion  the county's annual profit if they were to process 4,000 prisoners per year at this new location is $50,000.

Learn more here: brainly.com/question/13308210

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