Hello,

Does anyone please know how to tackle the attached math word problem?

(edited)

Hello,

Does anyone please know how to tackle the attached math word problem?

(edited)

3 answers

To **calculate gross margin** subtract Cost from total **revenue** and divide that number by total **revenue.**

**In other words, divide the profit by the total revenue. So in the case of the NBA it would be 5/65, and for EBL 4/42 and so on. **

**So just add up all the profits (5+4+12+2=23) and all the revenues (65+42+67+31=205) and this would be 23/205, or approx 9%. None of the above. **

For formulas, google is your friend!

Get the gross margin formula and calculate it for each individual player. Then, average it out (i.e. add them and divide by 4)

NBA: 5/65 = 7.7%

EBL: 4/42 = 9.5%

CSL: 12/67 = 17.9%

Client: 2/31 = 6.5%

(8.3+10.53+21.82+6.89)/4 = 10.4%

(edited)

Hi there,

The gross margin is equivalent to (profit)/(revenue) and in this situation it's (profit)/(profit+costs).

This way you can calculate the exact result and choose the adequate answer.

I hope this helps!

Mehdi

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