Marketing by the Numbers:

Facebook

Sales $$40,653,000$

Gross Profit $$35,199,000$

Marketing Expenses $$5,431,501$

Net Income $($Profit$)$ $$15,920,000$

Google

Sales $$110,855,000$

Gross Profit $$65,272,000$

Marketing Expenses $$16,875,750$

Net Income $($Profit$)$ $$12,662,000$

How do I calulate the profit margin, return on sales, return on investment and net marking contribution for both companies. Can you please show the calulations for each and not just the answers.

$($Example Profit Margin $=($net income$/$sales$)$x$100\%$

Net income $15,920,000$

Sales $40,653,000$

Profit Margin$=(15,920,000/40,653,000)$x$100\%=39\mathrm{.}16\%$

$1.$ Profit Margin

profit margin$=($profit divided by net sales$)\%$

net sales $=($gross sales$-$returned goods$)$

profit$=($gross sales$-$costs of goods sold$)$

$2.$ Return on Sales$=($net marketing contribution divided by net sales$)\%$

net marketing contribution $=$net sales $-$costs of goods sold$-$marketing

expenses

$3.$ Return on Investment$=($net marketing contribution divided by marketing expenses$)\%$