Last year, Company A reported profits of about $47 billion on sales of $282 billion. For that same period, Company B posted a profit of about $22 billion on sales of $113 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' income 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 each company. Hint: See the Marketing Profitability Metrics section of Appendix 3: Marketing By The Numbers in your textbook. Sales Gross Profit Company A Company B $281,822,000 $66,558,000 Profit Margin Marketing Expenses Net Income (Profit) Fill in the table below. (Round the NMC to the nearest whole number and all other values to two decimal places.) Company A Company B % $112,681,000 $56,174,000 $13,905,900 $21,787,000 $8,264,050 $46,962,000
Last year, Company A reported profits of about $47 billion on sales of $282 billion. For that same period, Company B posted a profit of about $22 billion on sales of $113 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' income 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 each company. Hint: See the Marketing Profitability Metrics section of Appendix 3: Marketing By The Numbers in your textbook. Sales Gross Profit Company A Company B $281,822,000 $66,558,000 Profit Margin Marketing Expenses Net Income (Profit) Fill in the table below. (Round the NMC to the nearest whole number and all other values to two decimal places.) Company A Company B % $112,681,000 $56,174,000 $13,905,900 $21,787,000 $8,264,050 $46,962,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Last year, Company A reported profits of about $47 billion on sales of $282 billion. For that same period, Company B
posted a profit of about $22 billion on sales of $113 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' income 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 each
company.
Hint: See the Marketing Profitability Metrics section of Appendix 3: Marketing By The Numbers in your textbook.
Sales
Gross Profit
Company A
$281,822,000
$66,558,000
$8,264,050
$46,962,000
Profit Margin
Marketing Expenses
Net Income (Profit)
Fill in the table below. (Round the NMC to the nearest whole number and all other values to two decimal places.)
Company B
%
Company B
$112,681,000
$56,174,000
$13,905,900
$21,787,000
Company A
%
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