Question: How will a 52% increase in sales result in 837% increased profits?? What accounting...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Question: How will a 52% increase in sales result in 837% increased profits?? What accounting concept is this?? (Below are subquestions but I mainly need confirmation of the accounting concept. I'm thinking it's CVP?)
We design and market Skechers-branded lifestyle footwear for men, women and children, and performance footwear for men and women under the Skechers GO brand name.... As of February 15 2015, we owned and operated 119 concept stores, 146 factory outlet stores and 98 warehouse outlet stores in the United States, and 51 concept stores, 33 factory outlet stores, and three warehouse outlet stores internationally The popularity of Skechers' products has increased significantly in recent years. Sales increased from $1,560.3 million in 2012 to $2,377.6 million in 2014, for an increase of 52.4 percent. In the same period, operating income increased from $22.3 million to $209.0 million, for an increase of 837 percent. It should be noted that this growth was not the result of larger acquisitions of or mergers with other companies
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!