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28 September, 08:05

Memorial Stadium has traditionally relied exclusively upon 80 baseball games to generate revenue. However, the local baseball team has decided to move to a larger city. It is estimated that profit margin can be maintained or even increased by offering a smaller number of larger events. If the profit margin for a baseball game is $45,000 and the profit margin for an average concert is $175,000, how many concerts would it take to recoup the loss of the baseball games? (Round to the nearest whole number.)

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  1. 28 September, 08:08
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    - First, find out the amount of income for the stadium to generate revenue by multiplying the number of baseball games with the profit margin from the baseball games

    80 x $ 45,000 = $ 3,600,000

    - The next one, we just have to divide that amount with stadium's profit margin

    $ 3,600,000 / $ 175,000 = 20,57 concerts

    So it took about 21 concerts to recoup the loss of the baseball games
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