The problem with "price of factories" is not all factories are the same, and may incur separate costs. For example, flaze had factories but had to refurbish them with equipment to produce weapons. First you'll have to "factorize" the workshops (we'll say $5 per 100 prisoners, so maybe $50k to set up a factory large enough to accommodate 1000 prisoners). You'll also have to pay extra for security measures, so round the $50k up to $60k. Then, you'll need to decide what you want to produce; weapons would be useful, but producing them may flood the market once you and flaze both take off so it may be wise to make something else. Canned food is also very useful, but may not have as high profit margins. Textiles, steel, cars, tools, furniture, etc. are all examples of what you might produce. The price for this equipment is estimated, but essentially the more steps/materials involved, the higher cost. So to make a car involves alot of steps/materials, so it'd be very expensive. Steel is simple, and would have inexpensive equipment. This price is about $30k to $120k per thousand workers (flaze spent $90k on refurbishing his factories to produce weapons). So, we can estimate the price to refurbish all your workshops to factories to be about $90-$180 per prisoner. The potential income will be similar to what flazeo is making; POTENTIALLY (you won't make this much) up to or over $100/unit (these would be VERY efficient, modern factories producing a good in very high demand - weapons during war, for example), but more likely closer to $40 or $50/unit. 1 Worker will probably provide 1 WP, so $40 or $50 per worker in a good scenario. It'll be probably be lower to start - $30/worker, or $22.5/worker (with the 75% price reduction). Flazeo's factory is making nearly $60/worker (not including wages); however, weapons are in high demand right now and his workers are better-trained (prisoners will probably work very slowly, atleast to start). If you're lucky, you might be able to get near his profits within a few weeks.
1. The price to get everyone in the medium and minimum security prisons would be (if there are 100 not working in each) about $1000 to expand the workshops, and an additional cost. The neighboring structures are private property; shops, houses, and/or warehouses. The average cost of buying them out might be $5k to $15k each, and then you'd have to tear down some walls and restructure the prison. This would cost a few hundred or thousand in materials (probably no more than $5k) and a few thousand in expert/manpower costs (could be voided with maybe ten of Tophat's experts and the labor of your prisoners). To expand both would therefore cost maybe $15k to $30k, but would also yield an increase in room. You could also try to expand upwards or downards, but this would have a much higher material/manpower cost ($25 to $60k, maybe).
2. See above.
3. They'd probably agree to a point; they would certainly agree to send a couple of their employees over every day to help manage/train the factories/prisoners if you asked (partially as payment for the goods), but any more than that and they'd want payment (probably $100 to $150 in weekly wages each). In essence, they are willing to use lend you the use of two or three of their workers/foremen to help train prisoners/foremen. This foreman would undoubtedly be an expert in factory layout. They don't provide building services, so you're SOL in that department (they wouldn't have any architects to lend you). The two-employee thing can be considered added into the contract.