Company A's sales last year were roughly double Company B's sales, and its profits were nearly 50 % higher. So, Company A is a better marketer, right? Sales and profits allow us to compare the profitability of these two companies. Between these two numbers lies information regarding the efficiency of marketing efforts by each firm. Using the following information from the companies' income statements (all numbers are in millions), calculate the net profit percentage (also called profit margin), net marketing contribution (NMC), marketing return on sales (ROS), and marketing return on investment (ROI) for both companies. Based on these calculations, which company is the better marketer? Net Sales (in millions) Cost of Goods Sold (in millions) Gross Profit (in millions) Total Marketing Expenses (in millions) Other (Non-Marketing) Expenses (in millions) Complete the table. (Round to one decimal place.) Net Profit Before Taxes (in millions) Net Profit Percentage NMC (in millions) Marketing ROS Marketing ROI Company A 57.5 23.2 34.3 10.7 7.7 Company A ☐% L Q5 Company B 28.6 11.8 16.8 4.1 3.8 Company B DADAA % 0
Company A's sales last year were roughly double Company B's sales, and its profits were nearly 50 % higher. So, Company A is a better marketer, right? Sales and profits allow us to compare the profitability of these two companies. Between these two numbers lies information regarding the efficiency of marketing efforts by each firm. Using the following information from the companies' income statements (all numbers are in millions), calculate the net profit percentage (also called profit margin), net marketing contribution (NMC), marketing return on sales (ROS), and marketing return on investment (ROI) for both companies. Based on these calculations, which company is the better marketer? Net Sales (in millions) Cost of Goods Sold (in millions) Gross Profit (in millions) Total Marketing Expenses (in millions) Other (Non-Marketing) Expenses (in millions) Complete the table. (Round to one decimal place.) Net Profit Before Taxes (in millions) Net Profit Percentage NMC (in millions) Marketing ROS Marketing ROI Company A 57.5 23.2 34.3 10.7 7.7 Company A ☐% L Q5 Company B 28.6 11.8 16.8 4.1 3.8 Company B DADAA % 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Company A's sales last year were roughly double Company B's sales, and its profits were nearly 50% higher. So, Company A is a better marketer, right?
Sales and profits allow us to compare the profitability of these two companies. Between these two numbers lies information regarding the efficiency of marketing efforts by each firm. Using the
following information from the companies' income statements (all numbers are in millions), calculate the net profit percentage (also called profit margin), net marketing contribution (NMC), marketing
return on sales (ROS), and marketing return on investment (ROI) for both companies. Based on these calculations, which company is the better marketer?
Net Sales (in millions)
Cost of Goods Sold (in millions)
Gross Profit (in millions)
Total Marketing Expenses (in millions)
Other (Non-Marketing) Expenses (in millions)
Complete the table. (Round to one decimal place.)
Net Profit Before Taxes (in millions)
Net Profit Percentage
NMC (in millions)
Marketing ROS
Marketing ROI
Company A
57,5
23.2
34.3
10.7
7.7
Company A
%
%
%
Company B
28.6
11.8
16.8
4.1
3.8
Company B
%
%
%
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