Question

In 2014, Company A reported profits of about $41 billion on sales of $221 billion. For that same period, Company B posted a profit of about $24 billion on sales of $89 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 n creating hose sales and profits. Using the owing nformation from the companies' inco e statements a numbers are n o sands calculate prit margin, пеї marketing contribution, marketing return on sales (or marketing ROS), and marketing return on investment (or marketing ROl) for each company. Company A Company B $221,015,000 $88,878,000 $75,557,000 $53,123,000 Marketing Expenses $8,291,850 $14,155,900 Net Income (Profit) $41,118,000 $23,928,000 Sales Gross 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 Profit Margin

Answer 1

	Company A	Company B
Sales	$221,015,000	$88,878,000	A
Gross Profit	$75,557,000	$53,123,000	B
Marketing Expenses	$8,291,850	$14,155,900	C
Net Income (Profit)	$41,118,000	$23,928,000	D
Profit Margin(D/A)	18.60%	26.92%
Net Marketing Contribution(B-C)	$67,265,150	$38,967,100	E
Marketing Return On Sales(or Marketing ros)(E/A)	30.43%	43.84%
Marketing Return On Investment(or Marketing roi(E/C)	811.22%	275.27%