In 2014, Apple reported profits of more than $50 billion on sales of $182 billion. For that same period, Microsoft posted a profit of almost $30 billion on sales of $88 billion. So Apple 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. Answer the questions using the following information from the two companies’ incomes statements (all numbers are in thousands): Apple Microsoft Sales $182,795,000 $86,833,000 Gross Profit $70,537,000 $59,899,000 Marketing Expenses $8,994,750 $15,474,000 Net Income (Profit) $52,503,000 $27,759,000 Calculate profit margin, net marketing contribution, marketing return on sales (or marketing ROS), and marketing return on investment (or marketing ROI) for each company. Which company is performing better?
In 2014, Apple reported profits of more than $50 billion on sales
of $182 billion. For that same period, Microsoft posted a profit
of almost $30 billion on sales of $88 billion. So Apple 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. Answer the questions using the following information from the two companies’ incomes statements (all numbers are in thousands):
Apple Microsoft
Sales $182,795,000 $86,833,000
Gross Profit $70,537,000 $59,899,000
Marketing Expenses $8,994,750 $15,474,000
Net Income (Profit) $52,503,000 $27,759,000
Calculate profit margin, net marketing contribution,
marketing return on sales (or marketing ROS), and marketing
company. Which company is performing better?
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