Marketing by the Numbers Exercise Set Two 2.1 Determine the market potential for a product that has 10 million prospective buyers who purchase an average of five per year and price averages $5. 2.2 Develop a profit-and-loss statement for a company that had $50 million in net sales last year. Cost of goods sold represents 45% of net sales. Marketing expenses in- clude selling expenses, promotion expenses, and freight. Selling expenses include sales salaries totaling $2 million per year and sales commissions (10% of sales). The company spent $2 million on advertising last year, and freight costs were 5% of sales. Other costs include $500,000 for managerial salaries and expenses for the marketing function and another $2 million for indirect overhead allocated to the division. 2.3 Using the profit-and-loss statement you developed in question 2.2 and assuming that the company's beginning inventory was $15 million, ending inventory was $6 million, and total investment was $30 million including inventory, determine the following: a. gross margin percentage b. net profit percentage c. operating expense percentage d. inventory turnover rate e. return on investment (ROD) f. net marketing contribution g. marketing return on sales (marketing ROS) h. marketing return on investment (marketing ROI) i. Is the company doing well? Explain your