Analyze changes in gross profit margin for all three years

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Reference no: EM13899526

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.

Reference no: EM13899526

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