Question

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?

Answer 1

1,000 multiply 16
16,000-12,000=4,000

Answer 2

ANSWER: $4000

EXPLANATION: It can be seen that the arena receives $1000 for each events. There are total 16 concerts which has been held in the arena. So, the total fund the arena received is $1,000 x 16 = $16,000.

However, the administrative costs of the arena stands at $12,000.

So, the profit margin of the arena for the concert sponsorship is $16,000 - $12,000 = $4,000