LA Theatres Inc. has two distinct revenue sources, ticket and concession revenues. The following information from LA Theatres Inc. income statements for the past three years is available:
|
(in millions)
|
2016
|
2015
|
2014
|
|
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
|
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.
Analyze the changes in gross profit margin for all three years.