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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