Question

If a stadium pays $15,000 for labor and $12,000 for parking, what is the stadium's profit margin if the game generates $145,952 in revenue?

Answer 1

i think 81.5% but i'm not completely sure.

Answer 2

81.5

Solution:

Net profit = Revenue - Cost

Net profit Margin = (Revenue - Cost)/ Revenue

Cost = $15,000 + $12,000

Cost = $27,000

Revenue = $145,952

Net profit Margin = ($145,952 - $27,000)/ $145,952

Net profit Margin = 0.815 or 81.5% (0.815*100 = 81.5).