Question

A stadium manager has signed five acts this year with a combined revenue projection of $1,000,050. The cost for these is expected to average $85,000 per act. How much profit margin does the stadium expect this last year?

Answer 1

The manager of the Stadium can expect a  $575,050.00 profit. $85,000 x 5= $425,000.

$1,000,050.00
-   425,000.00
_____________
  $575,050.00

Answer 2

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