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Calculate the Marketing Return on Investment (MROI).   Profit and Loss Statement Income Net Sales $750,000,000 Cost...

Calculate the Marketing Return on Investment (MROI).  

Profit and Loss Statement

Income

Net Sales

$750,000,000

Cost of Goods Sold

$300,000,000

Gross Margin

$450,000,000

Marketing Expenses

Sales Expenses

$78,000,000

Promotional Expenses

$34,000,000

$112,000,000

General and

Administrative Expenses

Marketing Salaries

$12,000,000

Indirect Overhead

$107,000,000

$119,000,000

Net Income before Taxes

$219,000,000

Solutions

Expert Solution

Marketing Return on Investment = (Gross profit- Marketing expense)/Marketing expense

= (450,000,000-112,000,000)/112,000,000

= 33800000/112000000

= 3.017857

= 301.79%

jeff jeffy answered 2 years ago
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