In 2014, Company A reported profits of about
$42
billion on sales of
$151
billion. For that same period, Company B posted a profit of about
$23
billion on sales of
$117
billion. So Company A is a better marketer, right? Sales and profits provide information to compare the profitability of these two competitors, but between these numbers is information regarding the efficiency of marketing efforts in creating those sales and profits. Using the following information from the companies' income statements (all numbers are in thousands), calculate profit margin, net marketing contribution, marketing return on sales (or marketing ROS), and marketing return on investment (or marketing ROI) for each company.
Company A |
Company B |
|
Sales |
$150,621,000 |
$117,056,000 |
Gross Profit |
$69,227,000 |
$59,617,000 |
Marketing Expenses |
$8,310,450 |
$15,432,900 |
Net Income (Profit) |
$42,015,000 |
$23,213,000 |
Fill in the table below. (Round the NMC to the nearest whole number and all other values to two decimal places.)
Company A |
Company B |
|
Profit Margin |
% |
% |
In 2014, Company A reported profits of about $42 billion on sales of $151 billion. For...
n 2014, Company A reported profits of about $42 billion on sales of $151 billion. For that same period, Company B posted a profit of about $23 billion on sales of $117 billion. So Company A is a better marketer, right? Sales and profits provide information to compare the profitability of these two competitors, but between these numbers is information regarding the efficiency of marketing efforts in creating those sales and profits. Using the following information from the companies' income...
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