Company A has profits of more than $50 billion on sales of $182 billion and Company M has profits of $30 billion on sales of $88 billion. Characters in case: Company A and Company M Introduction: Net profit margin is the amount left after the deduction of all expenses, interest, and preferred stock dividend. Net marketing contribution is calculated to determine whether the marketing strategy is available to cover the cost which is associated with the company’s sales and marketing. Return on marketing investment refers to the overall performance of the campaign of the market. Market return on sales is determined to calculate the difference between the two companies.

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Chapter 2, Problem 2.13AC

Summary Introduction

Case summary:

Company A has profits of more than $50 billion on sales of $182 billion and Company M has profits of $30 billion on sales of $88 billion.

Characters in case:

Company A and Company M

Introduction:

Net profit margin is the amount left after the deduction of all expenses, interest, and preferred stock dividend.

Net marketing contribution is calculated to determine whether the marketing strategy is available to cover the cost which is associated with the company’s sales and marketing.

Return on marketing investment refers to the overall performance of the campaign of the market.

Market return on sales is determined to calculate the difference between the two companies.

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