Scenario 9.1: 21st Century Pen, Inc. produces 2,000 pens per day, and hires 20 workers at a cost of $200 per day per worker. The price of each pen is $5 each. 21st Century Pen, Inc. pays a daily rental rate of $60 on its factory and a daily insurance rate of $20. 21st Century Pen, Inc. has a ten year lease on the factory, an insurance contract for a year, and the company has no other expenses.
-Refer to Scenario 9.1.21st Century Pen,Inc.'s profit is

Question

Quizplus · Accepted Answer

21st Century Pen, Inc.'s daily revenue is $2,000 x $5 = $10,000. Its daily costs are $200 x 20 = $4,000 for labor, $60 for rent, and $20 for insurance, for a total of $4,080. Therefore, its daily profit is $10,000 - $4,080 = $5,920.