Problema Solution
If a stadium pays $15,000 for labor and $12,000 for parking, what is the stadium's profit margin if the game generates $145,952 in revenue?
Answer provided by our tutors
Net profit Margin = Net profit / Revenue
Net profit = Revenue - Cost
Net profit Margin = (Revenue - Cost)/ Revenue
Cost = $15,000 + $12,000
Cost = $27,000
Revenue = $145,952
Net profit Margin = ($145,952 - $27,000)/ $145,952
Net profit Margin = 0.815 or 81.5% (0.815*100 = 81.5).