$2\mathrm{.}1$ Determine the market potential for a product that has $40$ million prospective buyers who purchase an average of ten units per year at an average price of $$6.$

$2\mathrm{.}2$ Develop a profit$-$and$-$loss statement for a company that had $$100$ million in net sales last year. Cost of goods sold represents $35\%$ of net sales. Marketing expenses include selling expenses, promotion expenses, and freight. Selling expenses include sales salaries totaling $$6$ million per year and sales commissions $(8\%$ of sales$).$ The company spent $$16$ million on advertising last year, and freight costs were $5\%$ of sales. Other costs include $$2,500,000$ for managerial salaries and expenses for the marketing function and another $$5$ million for indirect overhead allocated to the division.

$2\mathrm{.}3$ Using the profit$-$and$-$loss statement you developed in question $2\mathrm{.}2$ and assuming that the company$$s beginning inventory was $$45$ million, ending inventory was $$4$ million, and total investment was $$58$ million including inventory, determine the following:

gross margin percentage

net profit percentage

operating expense percentage

inventory turnover rate

return on investment $($ROI$)$

net marketing contribution

marketing return on sales $($marketing ROS$)$

marketing return on investment $($marketing ROI$)$

Is the company doing well? Explain your answer.