The stadium generates $16,250,000 annually. (Revenue)
Expenses related to football amount to $13,500,000 each year. (Cost)
Stadium operational costs are $2,700,000 per year. (Cost)
The profit margin is obtained by dividing net profit by revenue.
To calculate net profit, total costs must be subtracted from total revenue.
First, summing both costs gives the total expenses.
$13,500,000 + $2,700,000 = $16,200,000 (total cost)
Subtracting the $16,200,000 (total cost) from the $16,250,000 (revenue) results in $50,000 (net profit)
$50,000 (net profit) ÷ $16,250,000 (revenue) = 0.0030769
To convert this decimal to a percentage, multiply by 100
0.0030769 x 100 = 0.30769%
Round this percentage to 0.308%
The current profit margin for the stadium is 0.308%
