Using the profit-and-loss statement you developed in question 2.2b, and assuming that Westgate's beginning inventory was $11 million, ending inventory was $7 million, and total investment was $20 million including inventory, determine the following: a. gross margin percentage b. net profit percentage operating expense percentage d. inventory turnover rate e. return on investment (ROI) f. net marketing contribution g. marketing return on sales (marketing ROS) h. marketing return on investment (marketing ROI) i. Is the Westgate division doing well? Explain your answer. 2.3 C. Marketing by the Numbers Exercise Set Two 2.1 Determine the market potential for a product that has 20 million prospective buyers who purchase an average of 2 per year and price averages $50. How many units must a company sell if it desires a 10% share of this market? 2.2 Develop a profit-and-loss statement for the Westgate division of North Industries. This division manufactures light fixtures sold to consumers through home-improvement and hardware stores. Cost of goods sold represents 40% of net sales. Marketing penses include selling expenses, promotion expenses, and freight. Selling expenses include sales salaries totaling $3 million per year and sales commissions (5% of sales). The company spent $3 million on advertising last year, and freight costs were 10% of sales. Other costs include $2 million for managerial salaries and expenses for the mar- keting function and another $3 million for indirect overhead allocated to the division. Develop the profit-and-loss statement if net sales were $20 million last year. b. Develop the profit-and-loss statement if net sales were $40 million last year. c. Calculate Westgate's break-even sales. ex- a. 2.3 Using the profit-and-loss statement you developed in question 2.2b, and assuming that Westgate's beginning inventory and total investment was $20 million including inventory, determine the following: a. gross margin percentage b. net profit percentage operating expense percentage d. inventory turnover rate e. return on investment (ROI) f. net marketing contribution g. marketing return on sales (marketing ROS) h.marketing return on investment (marketing ROI) i. Is the Westgate division doing well? Explain your answer. was $11 million, ending inventory was $7 million, C