In 2014, Apple reported profits of more than $50 billion on sales of $182 billion. For that same period, Microsoft posted a profit of almost $30 billion on sales of $88 billion. So Apple is a better marketer, right? Sales and profits provide information to com- pare the profitability of these two competitors, but between these numbers is information regarding the efficiency of marketing efforts in creating those sales and profits. Appendix 3, Marketing by the Numbers, discusses other marketing profitability mea- sures beyond the return on marketing investment (marketing ROI) measure described in this chapter. Review the Appendix 2 to answer the questions using the following information from the two companies' incomes statements (all numbers are in thousands): Apple Microsoft Sales $182,795,000 $86,833,000 Gross Profit $70,537,000 $59,899,000 Marketing Expenses $8,994,750 $15,474,000 Net Income (Profit) $52,503,000 $27,759,000 2-13. Calculate profit margin, net marketing contribution, marketing return on sales (or marketing ROS), and mar- keting return on investment (or marketing ROI) for each company. Which company is performing better?

In 2014, Apple reported profits of more than $50 billion on sales of $182 billion. For that same period, Microsoft posted a profit of almost $30 billion on sales of $88 billion. So Apple is a better marketer, right? Sales and profits provide information to com- pare the profitability of these two competitors, but between these numbers is information regarding the efficiency of marketing efforts in creating those sales and profits. Appendix 3, Marketing by the Numbers, discusses other marketing profitability mea- sures beyond the return on marketing investment (marketing ROI) measure described in this chapter. Review the Appendix 2 to answer the questions using the following information from the two companies' incomes statements (all numbers are in thousands): Apple Microsoft Sales $182,795,000 $86,833,000 Gross Profit $70,537,000 $59,899,000 Marketing Expenses $8,994,750 $15,474,000 Net Income (Profit) $52,503,000 $27,759,000 2-13. Calculate profit margin, net marketing contribution, marketing return on sales (or marketing ROS), and mar- keting return on investment (or marketing ROI) for each company. Which company is performing better?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 8PB: The following revenue data were taken from the December 31, 2017, General Electric annual report...

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