Question

A Virginia county is considering whether to pay $50,000 per year to lease a prisoner transfer facility in a prime location adjacent to Washington D.C. They estimate it will cost $50.00 per prisoner to process the paperwork at this new location. The county is paid $75 commission for each prisoner they process.

a. what would be the county's annual profit if they were to process 4,000 prisoners per year at this new location?

Answer 1

The county's annual profit would be $100,000.

Step-by-step explanation:

To calculate the county's annual profit, we need to consider the revenue and the costs. The revenue per prisoner processed is $75. If the county processes 4,000 prisoners per year, the total revenue would be 4,000 x $75 = $300,000.

The cost per prisoner to process the paperwork at the new location is $50. If the county processes 4,000 prisoners per year, the total cost would be 4,000 x $50 = $200,000.

Subtracting the cost from the revenue, the county's annual profit would be $300,000 - $200,000 = $100,000.