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Scenario 1 Scenario 2 Revenue CGS Contribution to Pre Tax NI Sell airline ticket for $100. This sale contributes $10 to pre-tax net income. Question?
Scenario 1 | Scenario 2 | |
Revenue | ||
CGS | ||
Contribution to Pre Tax NI |
Sell airline ticket for $100. This sale contributes $10 to pre-tax net income.
Question? Did the company buy the ticket and resell it (scenario 1) , or did they just act as an intermediary and charge a $10 commission (scenario 2)?
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