An arena receives $1,000 per event for 16 concerts. If the administrative costs for this sponsorship total $12,000, what is the profit margin for the concert sponsorship?
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Find the total earnings:
1 event = $1000
16 events = 1000 x 16 = $16,000
Find the profit:
Total cost = $12,000
Profit = Selling Price - Total Cost
Profit = 16,000 - 12,000 = $4,000
Find the profit margin:
Profit margin = Profit/Cost Price x 100
Profit margin = 4000/12000 x 100 = 33.3%
Answer: The profit is 33.3%
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