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. How many prisoners would they have to process annually to make a profit of $100,000 at this new location?

Question

Quizplus · Accepted Answer

To make a profit of $100,000, the county needs to cover the $50,000 lease and the $50 processing cost per prisoner, while earning $75 per prisoner. The profit per prisoner is $75 - $50 = $25. To cover the lease and make $100,000 profit, they need $150,000 total. Dividing $150,000 by $25 gives 6,000 prisoners.

A Virginia County Is Considering Whether to Pay $50,000 Per