Question

In​ 2014, Company A reported profits of about

​$47

billion on sales of

​$240

billion. For that same​ period, Company B posted a profit of about

​$19

billion on sales of

​$85

billion. So Company A is a better​ marketer, right? Sales and profits provide information to compare the profitability of these two​ competitors, but between these numbers is information regarding the efficiency of marketing efforts in creating those sales and profits. Using the following information from the​ companies' income statements​ (all numbers are in​ thousands), calculate profit​ margin, net marketing​ contribution, marketing return on sales​ (or marketing​ ROS), and marketing return on investment​ (or marketing​ ROI) for each company.

                                                                                                                                                                                                                                                                                                                                         

    

	Company A	Company B
Sales	​$239,721,000	​$85,001,000
Gross Profit	​$75,517,000	​$47,819,000
Marketing Expenses	​$7,645,750	​$15,673,700
Net Income​ (Profit)	​$46,921,000	​$19,067,000

Fill in the table below. ​(Round the NMC to the nearest whole number and all other values to two decimal​ places.)

	Company A	Company B
Profit Margin	____​%	___%

Answer 1