Question

An arena receives $1,700 per event for 12 concerts. If the costs for this sponsorship total $14,000, what is the profit margin for the concert sponsorship?

Answer 1

Answer:

total profit margin for all 12 concert is $6,400.

profit margin for all one concert is  $533.33

Step-by-step explanation:

Amount of money received for one event = $1700

Total no of concert = 12

Total money received for 12 event = Amount of money received for one event * Total no of concert

Total money received for 12 event  = $1700 *12 = $20,400

Total cost of sponsorship = $14,000

Profit margin is the difference money invested and money earned.

here total investment is $14,000

Total money earned is  $20,400

Therefore profit margin = money earned - total investment

= $20,400 -  $14,000 = $6,400

Therefore total profit margin for all 12 concert is $6,400.

However to calculate profit margin for one concert we can simply divide the total profit margin for all 12 concert by no of concert (i.e 12)

profit margin for one concert = total profit margin for all 12 concert/total no of concert  = $6,400/12 = $533.33

profit margin for all one concert is  $533.33