online assignment

463 Marketing Management: Chapter 2

· What is the percent gross profit in this example (revenues-cost of goods sold/revenues)?

· 48.5/125= 38.8%

· If percent gross profit was reduced to 35%, how would NMC (net marketing contribution) change? What are the Marketing ROS and marketing ROI in that case? How about operating income?

NMC= Gross Profit – Marketing& Sales Expenses = 125*35% - 18.5 = 25.25

Marketing ROS= NMC/SALES *100= 25.25/125*100= 20.2

Marketing ROI= NMC/Marketing& Sales Expenses *100 = 25.25/125*18.5= 140.3

Operating income= 25.25- 20 = 5.25