Question

An owner had a profit margin of $50,000 last year. She expects to receive $1,168,000 from sponsorships this year with no additional expenses. What is the estimated profit margin for the upcoming year?

Answer 1

Answer: The estimated profit for the upcoming year=$1,118,000

Step-by-step explanation:

An owner had a profit margin last year = $50,000

The amount she expects to receive from sponsorship this year with no additional expenses= $1,168,000  

The estimated profit for the upcoming year= $1,168,000 -$50,000=$1118000

Hence, the estimated profit for the upcoming year=$1,118,000

Answer 2

Profit margin last year = $50000

Estimated money received this year = $1168000

Hence, gross profit made in this year = $1168000-50000=1118000$

Estimated profit margin will be =  

$\frac{1118000}{1168000}\times100=95.71%$