Question

A stadium has two sponsorship deals. Deal A has revenue of $100,000 and expenses of $10,000. Deal B has revenue of $50,000 and expenses of $20,000. What is the stadium's average profit as a percentage of revenue?

Answer 1

The profit is calculated by subtracting the expenses from the revenue. 
For Deal A:
                               Profit = $100,000 - $10,000
                                         = $90,000
Deal B:
                                Profit = $50,000 - $20,000 = $30,000

For the percentage of revenue, we divide the revenue by the expense and multiply the quotient by 100%

Deal A:                   %revenue = $100,000/$10,000 x 100 = 1000%

Deal B:                    %revenue = $50,000/$20,000 x 100 = 250%

Answer 2

Answer:  Stadium's average profit as a percentage of revenue is 80%.

Step-by-step explanation:

Since we have given that

In Deal A :

Revenue = $100,000

Expenses = $10,000

So, Profit becomes

$Profit=Revenue-Expenses\\\\Profit=100000-10000\\\\Profit=\ 90000$

Similarly, In Deal B,

Revenue = $50,000

Expenses = $20,000

So, Profit becomes,

$Profit=Revenue-Expenses\\\\Profit=50000-20000\\\\Profit=\ 30000$

Average of profit as a percentage of revenue of Stadium is given by

$\frac{90000+30000}{100000+50000}\times 100\\\\=\frac{120000}{150000}\times 100\\\\=80\%$

Hence, Stadium's average profit as a percentage of revenue is 80%.