Smithsborough, Inc. had the following profit and loss statement for the year ending 2009:

Sales$50,000,000

Cost of goods sold10,000,000

Gross Margin$40,000,000

Marketing Expenses

Sales expenses$10,000,000

Promotion expenses4,000,00014,000,000

General and Administrative Expenses

Managerial salaries and expenses for the

marketing function$1,000,000

Indirect overhead6,000,0007,000,000

Net profit before income tax$19,000,000

Determine the following ratios:

a.gross margin percentage80%

b.net profit percentage38%

c.operating expense percentage14%

d.net marketing contribution25,000,000

e.marketing return on sales (marketing ROS).5 or 50%

f.marketing return on investment (marketing ROI)1.67%

g.Is Smithsborough doing well?Explain your answer.