Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Do Only Question 2 (2.1, 2.2) Thank you Denzel Shirts achieved sales revenues of $10million. The company incurred marketing expenses totalling $2 million. Cost of
Do Only Question 2 (2.1, 2.2) Thank you
Denzel Shirts achieved sales revenues of $10million. The company incurred marketing expenses totalling $2 million. Cost of goods sold represented 60% of sales. The company also incurred other fixed overhead of $1.5 million. Denzel pays no taxes. 1.1 What is Denzel's net marketing contribution in dollars? 1.2 What is the company's marketing return on sales? 1.3 If the company has average inventory of $1.5 million, what is the company's Inventory turnover ratio? 1.4 What is the company's net margin in %? 1.5 What is the total sales revenues required for the company to make $2 million in net profits? David Bullet-proof Socks operates in the Etown area, trading in a radius of 5 miles. The area has a population density of 6,000 per square mile. Most of the inhabitants do not wear socks, and only about 10% of the population wear bullet-proof socks. Moreover, because of the high price that David charges, 75% of the potential market would not be willing to pay such high prices. Those who do, however, will likely buy 2 pairs a month forever. 2.1 How many pairs of socks do you expect David to sell each year? 2.2 If David's socks are priced at $50 a pair, and David has a 30% markup on cost, how many pairs of socks does David have to sell each year to cover the company's $300,000 in fixed costs? Iron Butterfly Company earned a ROI of 15% last year. The company had sales of $1.6 million, and fixed costs of $300,000, of which $80,000 were marketing expenses. Like its competitors, the company earned a 25% markup. 3.1 What was the company's total investment? 3.2 What was the company's Marketing ROI? 3.3 If the company's ROI was 20% instead and investment stays the same as in 3.1, what was its net profitsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started