Answer:
Profit margin= $575,050
Step-by-step explanation:
Given : The cost is expected per act = $85,000
Total revenue projection of 5 acts = $1,000,050
To find : The profit margin does the stadium expect
Solution : Cost of 1 act in the stadium = $85,000
Cost of 5 act in the stadium =$ 5×85,000
=$425,000 (Actual cost)
Profit = Total revenue - Actual cost
Profit = $1,000,050 - $425,000
Profit= $575,050