Refer to Appendix 3, Marketing by the Numbers, to determinethe marketing return on sales (marketing ROS)and return on marketing investment (marketing ROI) forCompany A and Company B in the chart below. Whichcompany is performing better? Explain. (AACSB: Written and Oral Communication; Analytical Thinking;Reflective Thinking)Company BCompany A(sales force only) (telemarketing only)$2,000,000$ 800,000$ 700,000$1,000,000$ 500,000$ 200,000Net salesCost of goods soldSales expenses

ROS stands for Return on Sales is the financial ratio that determines how effectively the business…

Written and Oral Communication; Analytical Thinking; Reflective Thinking) Company B Company A (sales force only) (telemarketing only) $2,000,000 $ 800,000 $ 700,000 $1,000,000 $ 500,000 $ 200,000 Net sales Cost of goods sold Sales expenses

Written and Oral Communication; Analytical Thinking; Reflective Thinking) Company B Company A (sales force only) (telemarketing only) $2,000,000 $ 800,000 $ 700,000 $1,000,000 $ 500,000 $ 200,000 Net sales Cost of goods sold Sales expenses

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Refer to Appendix 3, Marketing by the Numbers, to determine
the marketing return on sales (marketing ROS)
and return on marketing investment (marketing ROI) for
Company A and Company B in the chart below. Which
company is performing better? Explain. (AACSB:

Written and Oral Communication; Analytical Thinking;
Reflective Thinking)
Company B
Company A
(sales force only) (telemarketing only)
$2,000,000
$ 800,000
$ 700,000
$1,000,000
$ 500,000
$ 200,000
Net sales
Cost of goods sold
Sales expenses

Formula Formula ROI (%) = Net Income Principal Amount × 100

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