Suppose you manage a business that produces high-end dog food. The business produces 3,000 dog food cans per day, and can sell each can at $2.50/can regardless of how much is produced.  Your firm currently employs 20 workers, each of whom earns $15/hour and work 8 hours per day. Inputs, like the meat for the food and the metal for the can, cost $1.00/can. Your overhead expenses, including rent, property taxes, insurance, etc., which does not vary with the number of cans produced, equals $250 per day. 
a.	(3) Calculate your company’s current daily profit.


To calculate the company's current daily profit, we need to follow these steps:

### 1. **Revenue Calculation:**
The revenue is calculated by multiplying the number of cans produced by the price per can.

\[
\text{Revenue} = \text{Number of cans produced} \times \text{Price per can}
\]
\[
\text{Revenue} = 3,000 \, \text{cans/day} \times 2.50 \, \text{\$/can} = 7,500 \, \text{\$/day}
\]

### 2. **Cost Calculation:**
There are three types of costs: labor, input, and overhead costs.

#### a. **Labor Costs:**
Each worker earns \$15 per hour, works 8 hours per day, and there are 20 workers. So, the daily labor cost is:

\[
\text{Labor cost} = 20 \, \text{workers} \times 15 \, \text{\$/hour} \times 8 \, \text{hours/day} = 2,400 \, \text{\$/day}
\]

#### b. **Input Costs:**
The input cost per can is \$1.00, and the company produces 3,000 cans per day. So, the daily input cost is:

\[
\text{Input cost} = 3,000 \, \text{cans/day} \times 1.00 \, \text{\$/can} = 3,000 \, \text{\$/day}
\]

#### c. **Overhead Costs:**
The overhead costs are given as \$250 per day.

\[
\text{Overhead cost} = 250 \, \text{\$/day}
\]

### 3. **Total Costs:**
Now, we can sum the three types of costs (labor, input, and overhead):

\[
\text{Total costs} = 2,400 \, \text{\$/day} \, (\text{labor}) + 3,000 \, \text{\$/day} \, (\text{input}) + 250 \, \text{\$/day} \, (\text{overhead}) = 5,650 \, \text{\$/day}
\]

### 4. **Profit Calculation:**
Profit is calculated as the difference between revenue and total costs:

\[
\text{Profit} = \text{Revenue} - \text{Total costs}
\

Suppose you manage a business that produces high-end dog food. The business produces 3,000 dog food cans per day, and can sell each can at $2.50/can regardless of how much is produced. Your firm currently employs 20 workers, each of whom earns $15/hour and work 8 hours per day. Inputs, like the meat for the food and the metal for the can, cost $1.00/can. Your overhead expenses, including rent, property taxes, insurance, etc., which does not vary with the number of cans produced, equals $250 per day. Calculate your company’s current daily profit.

Learn how to calculate daily profit for a business producing 3,000 dog food cans per day, selling each at $2.50, with labor costs, input costs, and overhead expenses. This problem involves revenue, cost analysis, and profit calculation, suitable for high school students.

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