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?
5755050
To calculate the profit margin, we need to find the total cost and subtract it from the projected revenue.
Given:
Combined revenue projection: $1,000,050
Expected cost per act: $85,000
First, we find the total cost by multiplying the expected cost per act by the number of acts:
Total cost = $85,000 * 5 acts = $425,000
Next, we calculate the profit margin by subtracting the total cost from the projected revenue:
Profit margin = Combined revenue projection - Total cost
Profit margin = $1,000,050 - $425,000 = $575,050
Therefore, the stadium expects a profit margin of $575,050 in the last year.
To calculate the profit margin, we need to find the total cost of the acts and subtract it from the combined revenue projection.
First, let's find the total cost of the acts by multiplying the average cost per act by the number of acts:
Total cost = Average cost per act * Number of acts
Total cost = $85,000 * 5
Total cost = $425,000
Next, we can calculate the profit margin by subtracting the total cost from the combined revenue projection:
Profit margin = Combined revenue projection - Total cost
Profit margin = $1,000,050 - $425,000
Profit margin = $575,050
Therefore, the stadium expects a profit margin of $575,050 for this year.