Valuations & Acquisitions: Why Deal Due Diligence Is Worth a Try

The P&L formats used are based on historic formats, in which revenue from order shipping expenses (charged to customers) was shown as an offset to the cost to actually ship those orders to customers, the net of which typically was shown in the net shipping expense line of the P&L.

Accounting standards rulings now require shipping revenue to be recorded in the top line of the P&L. You can build the above models either way; the contribution to fixed expense breakeven will be the same.