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26 February, 06:29

A stadium has two sponsorship deals. Deal A has revenue of $100,000 and expenses of $10,000. Deal B has revenue of $50,000 and expenses of $20,000. What is the stadium's average profit as a percentage of revenue?

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  1. 26 February, 06:43
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    The profit is calculated by subtracting the expenses from the revenue.

    For Deal A:

    Profit = $100,000 - $10,000

    = $90,000

    Deal B:

    Profit = $50,000 - $20,000 = $30,000

    For the percentage of revenue, we divide the revenue by the expense and multiply the quotient by 100%

    Deal A: %revenue = $100,000/$10,000 x 100 = 1000%

    Deal B: %revenue = $50,000/$20,000 x 100 = 250%
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