# Question Solved1 AnswerIn 2013 , Comparyy A reported profits of about $$\ 11$$ billion on sales of $$\ 19$$ billion. For that same period, Company B posted a profit of about $$\ 525$$ million on sales of $$\ 2.0$$. 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' incomes statements (all numbers are in thousands), calculate profit margin, net marketing contribution, marketing return on sales (or marketing ROS), and marketing retum on investment (or marketing ROI) for both companies. Which company is performing better? Fill in the table below. (Round the NMC to the nearest whole number and all other values to one decimal place.)

Transcribed Image Text: In 2013 , Comparyy A reported profits of about $$\ 11$$ billion on sales of $$\ 19$$ billion. For that same period, Company B posted a profit of about $$\ 525$$ million on sales of $$\ 2.0$$. 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' incomes statements (all numbers are in thousands), calculate profit margin, net marketing contribution, marketing return on sales (or marketing ROS), and marketing retum on investment (or marketing ROI) for both companies. Which company is performing better? Fill in the table below. (Round the NMC to the nearest whole number and all other values to one decimal place.)
Transcribed Image Text: In 2013 , Comparyy A reported profits of about $$\ 11$$ billion on sales of $$\ 19$$ billion. For that same period, Company B posted a profit of about $$\ 525$$ million on sales of $$\ 2.0$$. 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' incomes statements (all numbers are in thousands), calculate profit margin, net marketing contribution, marketing return on sales (or marketing ROS), and marketing retum on investment (or marketing ROI) for both companies. Which company is performing better? Fill in the table below. (Round the NMC to the nearest whole number and all other values to one decimal place.)
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A higher margin is preferred by the entities because it shows that the company is in a stronger position.Explanation:Please refer to solution in this step.Step2/5mjx-container[jax="CHTML"]{line-height: 0;}mjx-container [space="4"]{margin-left: .278em;}mjx-mtext{display: inline-block; text-align: left;}mjx-assistive-mml{position: absolute !important; top: 0px; left: 0px; clip: rect(1px, 1px, 1px, 1px); padding: 1px 0px 0px 0px !important; border: 0px !important; display: block !important; width: auto !important; overflow: hidden !important; -webkit-touch-callout: none; -webkit-user-select: none; -khtml-user-select: none; -moz-user-select: none; -ms-user-select: none; user-select: none;}mjx-math{display: inline-block; text-align: left; line-height: 0; text-indent: 0; font-style: normal; font-weight: normal; font-size: 100%; font-size-adjust: none; letter-spacing: normal; border-collapse: collapse; word-wrap: normal; word-spacing: normal; white-space: nowrap; direction: ltr; padding: 1px 0;}mjx-mi{display: inline-block; text-align: left;}mjx-c{display: inline-block;}mjx-mo{display: inline-block; text-align: left;}mjx-c::before{display: block; width: 0;}.MJX-TEX{font-family: MJXZERO, MJXTEX;}@font-face{font-family: MJXZERO; src: url("https://cdn.jsdelivr.net/npm/mathjax@3/es5/output/chtml/fonts/woff-v2/MathJax_Zero.woff") format("woff");}@font-face{font-family: MJXTEX; src: url("https://cdn.jsdelivr.net/npm/mathjax@3/es5/output/chtml/fonts/woff-v2/MathJax_Main-Regular.woff") format("woff");}mjx-c.mjx-c50::before{padding: 0.683em 0.681em 0 0; content: "P";}mjx-c.mjx-c72::before{padding: 0.442em 0.392em 0 0; content: "r";}mjx-c.mjx-c6F::before{padding: 0.448em 0.5em 0.01em 0; content: "o";}mjx-c.mjx-c66::before{padding: 0.705em 0.372em 0 0; content: "f";}mjx-c.mjx-c69::before{padding: 0.669em 0.278em 0 0; content: "i";}mjx-c.mjx-c74::before{padding: 0.615em 0.389em 0.01em 0; content: "t";}mjx-c.mjx-cA0::before{padding: 0 0.25em 0 0; content: "\A0";}mjx-c.mjx-c6D::before{padding: 0.442em 0.833em 0 0; content: "m";}mjx-c.mjx-c61::before{padding: 0.448em 0.5em 0.011em 0; content: "a";}mjx-c.mjx-c67::before{padding: 0.453em 0.5em 0.206em 0; content: "g";}mjx-c.mjx-c6E::before{padding: 0.442em 0.556em 0 0; content: "n";}mjx-c.mjx-c3D::before{padding: 0.583em 0.778em 0.082em 0; content: "=";}mjx-c.mjx-c4E::before{padding: 0.683em 0.75em 0 0; content: "N";}mjx-c.mjx-c65::before{padding: 0.448em 0.444em 0.011em 0; content: "e";}mjx-c.mjx-c63::before{padding: 0.448em 0.444em 0.011em 0; content: "c";}mjx-c.mjx-c2F::before{padding: 0.75em 0.5em 0.25em 0; content: "/";}mjx-c.mjx-c73::before{padding: 0.448em 0.394em 0.011em 0; content: "s";}mjx-c.mjx-c6C::before{padding: 0.694em 0.278em 0 0; content: "l";}Step 2: (1): Computation of the profit margin:Profit&#160;margin=Netincome&#160;/salesCompany ACompany BNet Income$10,943,200$525,300Sales$18,714,700$2,027,500Profit Margin58.50%25.90%The profit margin for Company A is higher.Explanation:Please refer to solution in this step.Step3/5mjx-container[jax="CHTML"]{line-height: 0;}mjx-container [space="3"]{margin-left: .222em;}mjx-container [space="4"]{margin-left: .278em;}mjx-mtext{display: inline-block; text-align: left;}mjx-assistive-mml{position: absolute !important; top: 0px; left: 0px; clip: rect(1px, 1px, 1px, 1px); padding: 1px 0px 0px 0px !important; border: 0px !important; display: block !important; width: auto !important; overflow: hidden !important; -webkit-touch-callout: none; -webkit-user-select: none; -khtml-user-select: none; -moz-user-select: none; -ms-user-select: none; user-select: none;}mjx-math{display: inline-block; text-align: left; line-height: 0; text-indent: 0; font-style: normal; font-weight: normal; font-size: 100%; font-size-adjust: none; letter-spacing: normal; border-collapse: collapse; word-wrap: normal; word-spacing: normal; white-space: nowrap; direction: ltr; padding: 1px 0;}mjx-mi{display: inline-block; text-align: left;}mjx-c{display: inline-block;}mjx-mo{display: inline-block; text-align: left;}mjx-c::before{display: block; width: 0;}.MJX-TEX{font-family: MJXZERO, MJXTEX;}@font-face{font-family: MJXZERO; src: url("https://cdn.jsdelivr.net/npm/mathjax@3/es5/output/chtml/fonts/woff-v2/MathJax_Zero.woff") format("woff");}@font-face{font-family: MJXTEX; src: url("https://cdn.jsdelivr.net/npm/mathjax@3/es5/output/chtml/fonts/woff-v2/MathJax_Main-Regular.woff") format("woff");}mjx-c.mjx-c4E::before{padding: 0.683em 0.75em 0 0; content: "N";}mjx-c.mjx-c65::before{padding: 0.448em 0.444em 0.011em 0; content: "e";}mjx-c.mjx-c74::before{padding: 0.615em 0.389em 0.01em 0; content: "t";}mjx-c.mjx-cA0::before{padding: 0 0.25em 0 0; content: "\A0";}mjx-c.mjx-c6D::before{padding: 0.442em 0.833em 0 0; content: "m";}mjx-c.mjx-c61::before{padding: 0.448em 0.5em 0.011em 0; content: "a";}mjx-c.mjx-c72::before{padding: 0.442em 0.392em 0 0; content: "r";}mjx-c.mjx-c6B::before{padding: 0.694em 0.528em 0 0; content: "k";}mjx-c.mjx-c69::before{padding: 0.669em 0.278em 0 0; content: "i";}mjx-c.mjx-c6E::before{padding: 0.442em 0.556em 0 0; content: "n";}mjx-c.mjx-c67::before{padding: 0.453em 0.5em 0.206em 0; content: "g";}mjx-c.mjx-c63::before{padding: ... 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