Pepper the Parrot started a cracker business. He has 14 employees, all of whom make 15 cracker boxes every hour. Pepper's Cracker boxes cost 5 dollars each. Pepper's employees work for 15 dollars an hour for 9 hours, but one of those hours is for lunch, so no crackers are made in that hour. Assuming at the end of the workday, all the crackers are shipped off to a local grocery store that buys the crackers for 5 dollars each, how much will Pepper have made in profit after paying wages to his employees?

Question

Pepper the Parrot started a cracker business. He has 14 employees, all of whom make 15 cracker boxes every hour. Pepper's Cracker boxes cost 5 dollars each. Pepper's employees work for 15 dollars an hour for 9 hours, but one of those hours is for lunch, so no crackers are made in that hour. Assuming at the end of the workday, all the crackers are shipped off to a local grocery store that buys the crackers for 5 dollars each, how much will Pepper have made in profit after paying wages to his employees?

Answer 1

First, let's calculate how many cracker boxes are made in a day by all 14 employees.

Each employee makes 15 boxes per hour for 8 hours: 15 boxes/hour * 8 hours/day = 120 boxes/day
Total number of boxes made by all employees: 120 boxes/day/employee * 14 employees = 1680 boxes/day

Now, let's calculate how much Pepper makes in revenue from selling all the boxes of crackers.
Revenue = number of boxes * price per box = 1680 boxes/day * $5/box = $8400/day

Next, let's calculate how much Pepper pays his employees in total for a day's work.
Hourly wage per employee * number of hours worked = $15/hour * 9 hours = $135/day
Total wage for all employees = $135/day/employee * 14 employees = $1890/day

Now, let's calculate Pepper's profit for the day.
Profit = revenue - total wages = $8400/day - $1890/day = $6510/day

Therefore, Pepper will make $6510 in profit after paying wages to his employees on a day when all the crackers are sold to the grocery store.