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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

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 3PB: Evaluate the two departments for Moxie Products. Compare the years performance of the two...
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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? Company A $18,714,700 $10,443,300 $1,491,400 Marketing Expenses Net Income (Profit) $10,943,200 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 Sales Gross Profit Profit Margin Company B $2,027,500 $930,400 $265,800 $525,300
Transcribed Image Text: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? Company A $18,714,700 $10,443,300 $1,491,400 Marketing Expenses Net Income (Profit) $10,943,200 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 Sales Gross Profit Profit Margin Company B $2,027,500 $930,400 $265,800 $525,300
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