Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedQuestion: 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?)image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions