It won’t let me ask this question in the marketing section. So if you can somehow help me with that... thank you...
In 2014, Company A reported profits of about $52 billion on sales of $251 billion. For that same period, Company B posted a profit of about $22 billion on sales of $85 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.
This is all the information I was given.
Company ACompany B
Sales $250,670,000$84,541,000
Gross Profit $68,872,000$54,597,000
Marketing Expenses$8,421,750 $14,972,100
Net Income (Profit)$52,138,000$21,705,000