Question

Homework: Chapter 3 Marketing by the Numbers Save Score: 0 of 1 pt 1 of 1 (0 completo) HW Score: 0%, 0 of 1 pt Metrics 2.1 Question Help In 2014, Company A reported profits of about $47 billion on sales of $242 billion. For that samo period, Company B posted a profit of about $21 billion on sales of $85 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 retur on sales (or marketing ROS), and marketing return on Investment for marketing ROI) for each company. Inc Company A Company B Sales $241,802,000 $85,137,000 Gross Profit $79,410,000 $53,727,000 Marketing Expenses $8,835,450 $14,244,000 Net Income (Profit $46,703,000 $21.269,000 Fil 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 26.66% 33.19%

Answer 1

Based on the information available in the question, we can answer as follows:-

Requirement 1:-

Profit Margin = Net Income/Sales

Particulars	Company A	Company B
Net Income	46,703,000	21,269,000
Sales	241,802,000	85,137,000
Profit Margin	19.31%	24.98%

Requirement 2:-

Net Marketing Contribution = Gross Profit - Marketing Expenses

Particulars	Company A	Company B
Gross Profit(B)	79,416,000	53,727,000
Marketing expenses( C)	8,635,450	14,244,000
Net Marketing contribution(A=B-C)	70,780,550	39,483,000

Requirement 3:-

Net Marketing Return on Sales = (Gross Profit - Marketing expenses) / Sales * 100

Particulars	Company A	Company B
Gross Profit(B)	79,416,000	53,727,000
Marketing expenses( C)	8,635,450	14,244,000
Net Marketing contribution(A=B-C)	70,780,550	39,483,000
Sales(D)	241,802,000	85,137,000
Net Marketing Contribution % (A/D)	29.27%	46.38%

Requirement 4:-

Particulars	Company A	Company B
Gross Profit(B)	79,416,000	53,727,000
Marketing expenses( C)	8,635,450	14,244,000
Net Marketing contribution(A=B-C)	70,780,550	39,483,000
Marketing Return on Investment(A/C)	819.65%	277.19%

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