Question

Determine the marketing return on sales​ (marketing ROS) and return on marketing investment​ (marketing ROI) for Company A and Company B in the table below. Which company is performing​better?

	Company A	Company B
Net Sales	$1,000,000	950,000
Cost of Goods Sold	$550,000	$425,000
Sales Expenses	$350,000	$150,000

1. Fill in the table below (round to the nearest whole number). Calculate the net marketing contribution​ (NMC) for each company.

	Company A	Company B
NMC	$________	$_________

2. Calculate the marketing ROS for each company in the table below. ​(Round to the nearest whole​ number.)

	Company A	Company B
Marketing ROS	______%	______%

3. Calculate the marketing ROI for each company in the table below. ​(Round to the nearest whole​ number.)

	Company A	Company B
Marketing ROI	______%	______%

4. ________ is performing more efficiently.

Answers: Company A OR Company B

Answer 1

1. Fill in the table below (round to the nearest whole number). Calculate the net marketing contribution​ (NMC) for each company.

	Company A	Company B
NMC	100000	375000

2. Calculate the marketing ROS for each company in the table below. ​(Round to the nearest whole​ number.)

	Company A	Company B
Marketing ROS	10%	375000/950000 = 39%

3. Calculate the marketing ROI for each company in the table below. ​(Round to the nearest whole​ number.)

	Company A	Company B
Marketing ROI	______%	______%

4. ________ is performing more efficiently.

Answers: Company A OR Company B

Note: Marketing investment is not given in question pls tell me marketing investment then i calculate marketing ROI = Contribution margin/Investment