If a stadium pays $20,000 for labor and $13,000 for parking, what is the stadium's profit margin if the game generates $206,000 in revenue?

Answer:$30,300

The profit margin also known as net profit ratio is 84%

Explanation:

profit margin is also known as net profit ratio is a measured by finding the net profit as a ratio to the revenue. this is used to measure how profitable a business is.

profit margin = net profit / revenue (equation 1)

net profit = revenue - cost (equation 2)

revenue = $206000

cost = $20000 + $13000 = $33000

from equation 2

net profit = $206000 - $33000 = $173000

substitute the net profit and revenue values into equation 1

profit margin = $173000 / $206000 = 0.84 * 100 (since it is ratio of the revenue)

hence is profit margin is 84%