Question
In: Finance
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%
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that is available for distribution to its preferred and common
shareholders.
The income statement is prepared using the generally accepted
accounting principles (GAAP) that match the firm’s revenues and
expenses to the period in which they were...
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