Question

A stadium brings in $16.25 million per year. it pays football-related expenses of $13.5 million and stadium expenses of $2.7 million per year. whatis the stadium's current profit margin

Answer 1

To find the stadium's profit margin, subtract its expenses from its revenue and divide by the revenue, then multiply by 100 to get the percentage.

Step-by-step explanation:

In order to find the stadium's current profit margin, we need to subtract its total expenses from its total revenue and then divide the result by the total revenue. The stadium brings in $16.25 million per year and has football-related expenses of $13.5 million and stadium expenses of $2.7 million per year.

To calculate the profit margin, we subtract the total expenses ($13.5 million + $2.7 million) from the total revenue ($16.25 million): $16.25 million - ($13.5 million + $2.7 million) = $16.25 million - $16.2 million = $0.05 million.

Finally, we divide the profit ($0.05 million) by the total revenue ($16.25 million) and multiply by 100 to get the profit margin as a percentage: ($0.05 million / $16.25 million) * 100 = 0.003076923076923 * 100 = 0.3076923076923%.

Answer 2

we have that

Profit margin is calculated by finding the net profit as a percentage of the revenue

Profit margin = [Net profit / Revenue]

Net profit= [Revenue-Cost]

we know that

Revenue = $16.25 million

Cost = $13.5 million + $2.7 million

Net profit = [16.25 million - (13.5 million + 2.7 million)]

Net profit = $0.05 million

Profit margin = 0.05 / 16.25

Profit margin = 0.003077 or 0.3077%