Suppose a fishing boat currently brings 10,000 fish to market each day and earns a profitof $40,000 when the price of fish is $12. Suppose that there are 100 workers on the boat, and each works 10 hours each day. If their health insurance premiums, paid by the boat owner, increase by $80 per worker, what will the new profit be?

Question

Quizplus · Accepted Answer

The increase in health insurance premiums is $80 per worker for 100 workers, totaling an increase in costs of $80 * 100 = $8,000. Subtracting this from the original profit of $40,000 gives a new profit of $40,000 - $8,000 = $32,000.

Suppose a Fishing Boat Currently Brings 10,000 Fish to Market