MyEye 2.0 is a thumb drive-sized device that weighs less than an ounce and attaches magnetically to the stem of almost any pair of glasses. It helps people with impaired vision to "see." It recognizes paper money dominations, faces based on stored images, surroundings, and almost anything else to which the user points a finger. MyEye 2.0 can read a menu or package label and softly tell the wearer what is being served for dinner via a small speaker near the user's ear. To almost 8 million visually impaired Americans and 253 million visually impaired people worldwide, this could be a game-changer. However, for many, the $4,500 price tag makes the product unattainable. By contrast, many smartphones equipped with Al technology have apps that can do many of the same things as MyEye 2.0, although they are not wearable. Some analysts believe this wearability does not add enough value to justify MyEye 2.0's high price, especially considering that some 58 percent of U.S. adults with significant vision impairment are unemployed and that percentage is likely higher worldwide. Apple's iPhone 13 series-with Face ID, Siri, and its other Al sensors and camera, speaker, and app capabilities- can do many of the things MyEye 2.0 can do. It carries a price tag of $1,500 with the estimated cost of goods sold (COGS) of $360. In contrast, MyEye 2.0's COGS is estimated at $200 per device.

Calculate the gross margin dollars and percentage for the MyEye 2.0 and the iPhone 13. Refer to The Profit-and-Loss Statement and Marketing Budget in Appendix 2: Marketing by the Numbers to learn how to calculate gross margins.

Data from appendix 2

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The Profit-and-Loss Statement and Marketing Budget All marketing managers must account for the profit impact of their marketing strategies. A major tool for projecting such profit impact is a pro forma (or projected) profit-and- loss statement (also called an income statement or operating statement). A pro forma statement shows projected revenues less budgeted expenses and estimates the projected net profit for an organization, product, or brand during a specific planning period, typi- cally a year. It includes direct product production costs, marketing expenses budgeted to attain a given sales forecast, and overhead expenses assigned to the organization or product. A profit-and-loss statement typically consists of several major components (see ● Table A2.1): • Net sales-gross sales revenue minus returns and allowances (for example, trade, cash, quantity, and promotion allowances). Wise Domotics's net sales for 2023 are esti- mated to be $168 million, as determined in the previous analysis. • Cost of goods sold (sometimes called cost of sales)-the actual cost of the merchandise sold by a manufacturer or reseller. It includes the cost of inventory, purchases, and other costs associated with making the goods. Wise Domotics's cost of goods sold is estimated to be 50 percent of net sales, or $84 million. • Gross margin (or gross profit)-the difference between net sales and cost of goods sold. Wise Domotics's gross margin is estimated to be $84 million. • Operating expenses-the expenses incurred while doing business. These include all other expenses beyond the cost of goods sold that are necessary to conduct business. Operating expenses can be presented in total or broken down in detail. Here, Wise Domotics's estimated operating expenses include marketing expenses and general and administrative expenses.