Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Name: Please turn this in before the end of the class. McDonald's vs. Burger King In 2013, McDonald's reported profits of almost $6 billion

image text in transcribed

Name: Please turn this in before the end of the class. McDonald's vs. Burger King In 2013, McDonald's reported profits of almost $6 billion on sales of $28 billion. For that same period, Burger King posted a profit of almost $234 million on sales of $1.1 billion. So McDonald's 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. McDonald's Net Sales $28,105,700 Cost of Goods Sold Gross Profit $17,203,000 $10,902,700 Burger King $1,146,300 $ 195,300 $ 951,000 Marketing Expenses $ 1,600,500 $ 321,600 Net Income (Profit) $ 5,585,900 $ 233,700 Calculate net profit margin, net marketing contribution, and marketing return on investment (or marketing ROI) for both companies. Which company is performing better? Hints: Net profit margin = net income / net sales Net marketing contribution (NMC) = net sales - cost of goods sold - marketing expenses Marketing ROI NMC / marketing expenses Explain which company has a higher net profit margin and which company has a higher marketing ROI.

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

Forensic Accounting

Authors: Robert Rufus, Laura Miller, William Hahn

1st Edition

133427528, 133050475, 9780133427523, 978-0133050479

More Books

Students also viewed these Accounting questions