John can produce 1000 tires a day. It cost $250 to produce each tire. He manages to sell them for 1.5 times as much. He could sell 1200 tires a day if his factory was able to produce more. How much money does he lose out a week by not being able to produce all the tires?
Thoughts? Step-by-step reasoning:
He sells each tire for 250 * 1.5 = $375. That means he makes a profit of 375 - 250 = $125 per tire. His production is 1200 - 1000 = 200 short. So he loses out on 125 * 200 = $25,000 a day. So he loses out on 25000 * 7 = $175,000 a week.
Thus, the answer is 175000.