Calculate an overall gross profit margin for la theatres


LA Theatres Inc. has two distinct revenue sources, ticket and concession revenues. The follow- ing information from LA Theatres Inc. income statements for the past three years is available:

(in millions)

2013

2012

2011

Ticket revenue

$1,731

$1,642

$1,120

Concessions revenue

792

687

 411

Total revenue

$2,523

$2,329

$1,531

Cost of goods sold-tickets

$ 951

$ 854

$ 549

Cost of goods sold-concessions

70

69

48

Total cost of goods sold

$1,021

$ 923

$ 597

Gross profit

$1,502

$1,406

$ 934

(a) Calculate gross profit margins for tickets and concessions for all three years. Calculate an overall gross profit margin for LA Theatres Inc. for all three years.

(b) Analyze the changes in gross profit margin for all three years.

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Financial Accounting: Calculate an overall gross profit margin for la theatres
Reference No:- TGS01192678

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