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 P and Company V 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. Adequate information: Particulars Company P Company V Sales $125,897,000 $87,421,000 Gross profit $50,439,000 $20,899,000 Marketing expenses $4,333,750 $13,474,000 Net income $42,305,000 $17,957,000 Selling & administrative expenses $6,127,000 $4,564,000 General expenses $2,641,320 $3,854,600

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Answer 1

Question

Chapter 2, Problem 2.14AC

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 P and Company V

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.

Adequate information:

Particulars Company P Company V

Sales $125,897,000 $87,421,000

Gross profit $50,439,000 $20,899,000

Marketing expenses $4,333,750 $13,474,000

Net income $42,305,000 $17,957,000

Selling & administrative expenses $6,127,000 $4,564,000

General expenses $2,641,320 $3,854,600

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Answer 2

Question

Chapter 2, Problem 2.14AC

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 P and Company V

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.

Adequate information:

Particulars Company P Company V

Sales $125,897,000 $87,421,000

Gross profit $50,439,000 $20,899,000

Marketing expenses $4,333,750 $13,474,000

Net income $42,305,000 $17,957,000

Selling & administrative expenses $6,127,000 $4,564,000

General expenses $2,641,320 $3,854,600

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Answer 3

Question

Chapter 2, Problem 2.14AC

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 P and Company V

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.

Adequate information:

Particulars Company P Company V

Sales $125,897,000 $87,421,000

Gross profit $50,439,000 $20,899,000

Marketing expenses $4,333,750 $13,474,000

Net income $42,305,000 $17,957,000

Selling & administrative expenses $6,127,000 $4,564,000

General expenses $2,641,320 $3,854,600

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Answer 4

Question

Chapter 2, Problem 2.14AC

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 P and Company V

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.

Adequate information:

Particulars Company P Company V

Sales $125,897,000 $87,421,000

Gross profit $50,439,000 $20,899,000

Marketing expenses $4,333,750 $13,474,000

Net income $42,305,000 $17,957,000

Selling & administrative expenses $6,127,000 $4,564,000

General expenses $2,641,320 $3,854,600

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Answer 5

Chapter 2, Problem 2.14AC

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 P and Company V

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.

Adequate information:

Particulars Company P Company V

Sales $125,897,000 $87,421,000

Gross profit $50,439,000 $20,899,000

Marketing expenses $4,333,750 $13,474,000

Net income $42,305,000 $17,957,000

Selling & administrative expenses $6,127,000 $4,564,000

General expenses $2,641,320 $3,854,600

Answer 6

Chapter 2, Problem 2.14AC

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 P and Company V

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.

Adequate information:

Particulars Company P Company V

Sales $125,897,000 $87,421,000

Gross profit $50,439,000 $20,899,000

Marketing expenses $4,333,750 $13,474,000

Net income $42,305,000 $17,957,000

Selling & administrative expenses $6,127,000 $4,564,000

General expenses $2,641,320 $3,854,600

Answer 7

Chapter 2, Problem 2.14AC

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 P and Company V

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.

Adequate information:

Particulars Company P Company V

Sales $125,897,000 $87,421,000

Gross profit $50,439,000 $20,899,000

Marketing expenses $4,333,750 $13,474,000

Net income $42,305,000 $17,957,000

Selling & administrative expenses $6,127,000 $4,564,000

General expenses $2,641,320 $3,854,600

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 2 - Prob. 2.1DQ Ch. 2 - Prob. 2.2DQ Ch. 2 - Prob. 2.3DQ Ch. 2 - Prob. 2.4DQ Ch. 2 - Prob. 2.5DQ Ch. 2 - Prob. 2.6CTE Ch. 2 - Prob. 2.7CTE Ch. 2 - Prob. 2.8CTE Ch. 2 - Prob. 2.9AC Ch. 2 - Prob. 2.10AC

Solution Summary: The author explains the formula to calculate the net profit margin for Company P and Company V.

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Chapter 2 Solutions

Particulars	Company P	Company V
Sales	$125,897,000	$87,421,000
Gross profit	$50,439,000	$20,899,000
Marketing expenses	$4,333,750	$13,474,000
Net income	$42,305,000	$17,957,000
Selling & administrative expenses	$6,127,000	$4,564,000
General expenses	$2,641,320	$3,854,600