In 2013, Company A reported profits of about $11 billion on sales of $19 billion. For that same period, Company B posted a profit of about $525 million on sales of $2.0 billion. So Company A 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. Using the following information from the companies incomes statements (all numbers are in thousands), calculate profit margin, net marketing contribution, marketing return on sales (or marketing ROS), and marketing return on investment (or marketing ROI) for both companies. Which company is performing better? Sales Gross Profit Marketing Expenses Net Income (Profit) Company A $18,714,700 $10,443,300 $1,491,400 $10,943,200 Profit Margin Company B $2,027,500 $930,400 $265,800 $525,300 Fill in the table below. (Round the NMC to the nearest whole number and all other values to one decimal place.) Company A Company B

In 2013, Company A reported profits of about $11 billion on sales of $19 billion. For that same period, Company B posted a profit of about $525 million on sales of $2.0 billion. So Company A 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. Using the following information from the companies incomes statements (all numbers are in thousands), calculate profit margin, net marketing contribution, marketing return on sales (or marketing ROS), and marketing return on investment (or marketing ROI) for both companies. Which company is performing better? Sales Gross Profit Marketing Expenses Net Income (Profit) Company A $18,714,700 $10,443,300 $1,491,400 $10,943,200 Profit Margin Company B $2,027,500 $930,400 $265,800 $525,300 Fill in the table below. (Round the NMC to the nearest whole number and all other values to one decimal place.) Company A Company B

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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