Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In 2014, Company A reported profits of about $52 billion on sales of $156 billion. For that same period, Company B posted a profit of

image text in transcribed
In 2014, Company A reported profits of about $52 billion on sales of $156 billion. For that same period, Company B posted a profit of about $26 billion on sales of $105 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 $156,145,000 $104,893,000 Gross Profit $68,558,000 $47,163,000 Marketing Expenses $8,501,250 $14,213,000 Net Income (Profit) $51,527,000 $25,739,000 Fill 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

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_2

Step: 3

blur-text-image_3

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

Practical Auditing Techniques For ISO/TS 16949

Authors: Raymond Ness

1st Edition

978-0595273126

More Books

Students also viewed these Accounting questions