Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Also need the profit margin, NMC, marketing ROS, and marketing ROI for both companies n 2014, Company A reported profits of about $49 billion on

Also need the profit margin, NMC, marketing ROS, and marketing ROI for both companies image text in transcribed
n 2014, Company A reported profits of about $49 billion on sales of $330 billion. For that same period, Company B posted a profit of about $22 billion on sales of $113 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 $330,060,000 $113,044,000 Gross Profit $71,216,000 $46,787 000 Marketing Expenses $7,412,650 $13,675,800 Net Income (Profit) $48,785,000 $21.979,000 Fill in the table below. (Round the NMC to the nearest whole number and all other values to two decimal pihees.) Company A 11% Company B % Profit Margin

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Deferred Income Taxes

Authors: Bobby Carmichael

2nd Edition

1119724562, 9781119724568

More Books

Students also viewed these Accounting questions