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. What is the stadium's current profit margin?

Answer 1

# Answer=0.3077%

# Explanation-

Total revenue=16.25 million $

Total expenses=13.5+2.7=16.2 million $

Total profit is calculated by-

Total profit= total revenue-total expenses

Total profit=16.5-16.2

Total profit= 0.05 million $.

Profit margin is calculated by-

Profit margin = Total profit / Revenue × 100%

Profit margin = 0.05 / 16.25 × 100%

Profit margin = 0.3077%

Total profit margin of the stadium is 0.3077%.

Hope this helps...