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Chapter Analysis of Financial Statement – Gross Profit Margin

Forums › Ask CIMA Tutor Forums › Ask CIMA F2 Tutor Forums › Chapter Analysis of Financial Statement – Gross Profit Margin

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  • April 11, 2019 at 7:07 pm #511987
    varunaby
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    Guys how do you calculate Gross Profit Margin for an Airline Company

    What do we include to calculate the Gross Profit? I am not talking about operating expenses
    These are items from which i have to calculate the gross profit? I dont have any idea what are the items that come under? if anyone has any clue could you please help me out

    Staff Costs
    Fuel
    Airport Charges
    Ground Operations
    Marketing
    Maintenance
    Depreciation and amortization

    Thanks
    Varun

    April 12, 2019 at 5:04 pm #512117
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7079
    • ☆☆☆☆☆

    Hi,

    You won’t find cost of sales in an airline company as it is offering a service and not selling goods, so you cannot calculate the gross margin.

    Thanks

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