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In 2014, Company A reported profits of about 542 billion on sales of $159 billion. For that same period, Company B posted a profit of
In 2014, Company A reported profits of about 542 billion on sales of $159 billion. For that same period, Company B posted a profit of about $27 billion on sales of $82 billion. So Company Ais a better marketer, right? Sales and profits provide information to compare the profitability of these two competitors, but between these numbers 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. Sales Gross Profit Marketing Expenses Net Income (Profit) Company A $158,681,000 $66,258,000 $8,222,450 $42,146,000 Company B $82,148,000 $49,572,000 $12, 117,600 $27,269,000
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