Question

Determine the marketing return on sales​ (marketing ROS) and return on marketing investment​ (marketing ROI) for...

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 $2,000,000 850,000
Cost of Goods Sold $350,000 $325,000
Sales Expenses $300,000 $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

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