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tangare
1 month ago
12

A company is offering to pay a stadium for naming rights. If the administrative costs for this sponsorship are $78,000, and thes

e costs are 8% of the revenue for the naming sponsorship, how much is the company offering to pay for the stadium naming rights?
Business
1 answer:
marusya05 [3K]1 month ago
6 0

Answer:

The company’s offer for the rights to name the stadium amounts to $71,760.

Explanation:

The sponsorship’s total administrative cost is $78,000, which constitutes 8% of the revenue generated from the naming rights. Hence,

= Revenue × Percentage

= $78,000 × 8%

= $6,240

To find the amount proposed for the naming rights, we subtract the revenue-related expense from the total cost:

= $78,000 - $6,240

= $71,760

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