Question

An owner had a profit margin of $50,000 last year. She expects to receive $1,168,000 from sponsorships this year with no additional expenses. What is the estimated profit margin for the upcoming year

Answer 1

Answer:

Estimated profit margin this year = 95%

Step-by-step explanation:

Profit Margin = $50,000

Receivable this year = $1,168,000

Gross profit From the year = $1,168,000-50,000

                                            =$1118000

Percentage profit margin this year = $\frac{1118000}{1168000}*100%$

                                                         =0.95 * 100

                                                         =95 %    

Estimated profit margin this year = 95%

Answer 2

Profit margin last year = $50000

Estimated money received this year = $1168000

Hence, gross profit made in this year = $1168000-50000=1118000$

Estimated profit margin will be =

$\frac{1118000}{1168000}\times100= 95.71$%