Question: A new factory opens up and hires 20 people to make t-shirts. Each person makes on average 20 shirts per day during their 8-hour shift. The employees each get paid $12 an hour plus $5 per shirt they make. The company sells shirts for $35 each.  Nonemployee expenses come out to $1000 a day. How much does the company make in profits per day? Think carefully first, then make a decision:
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Each employee gets paid 20 * 5 = $100 for the shirts they make. They also get paid 12 * 8 = $96 for hours worked. So they get a total of 100 + 96 = $196 per day. That means employee cost is 20 * 196 = $3920. The factory makes 20 * 20 = 400 shirts. So they make 400 * 35 = $14,000 from selling shirts. So they made a profit of 14,000 - 3,920 - 1,000 = $9,080. So the answer is 9080.
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