Question

The stadium is being courted to host weekly UFC events, with each event projected to generate $90,000 in revenue. If the cost for hosting one of these events is $40,000, what is the projected profit margin for the stadium over the year? (Assume 52 events per year.)

Answer 1

Given:
projected revenue of each event: 90,000
cost of each event: 40,000
weekly events: 52 events per year

Profit = Revenue - Cost
P = 90,000 - 40,000
P = 50,000 per event

Annual Profit = 50,000 per event * 52 events per year  = 2,600,000