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MM-1 - 30,000,000 100,000,000 General and Administrative...

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Concepts of Marketing Name: JOMC 475 MM-1 (Chapter 2) Appendix 3, Marketing by the Numbers, discusses other marketing profitability metrics beyond the return on marketing investment (marketing ROI) measure described in this chapter. The following is a profit-and-loss statement for a business. Review Appendix 3 and answer the questions below. Net Sales $800,000,000 Cost of goods sold 375,000,000 Gross Margin $425,000,000 Marketing Expenses Sales expenses $70,000,000 Promotion expenses
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Unformatted text preview: 30,000,000 100,000,000 General and Administrative Expenses Marketing salaries and expenses $10,000,000 Indirect overhead 60,000,000 70,000,000 Net profit before income tax $255,000,000 1. Calculate the net marketing contribution (NMC) for this company. 2. Calculate both marketing return on sales (or marketing ROS) and marketing return on investment (or marketing ROI) as described in Appendix 3. Is this company doing well?...
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