Name: Please turn this in before the end of the class. McDonald's vs. Burger King In 2013, McDonald's reported profits o

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Name Please Turn This In Before The End Of The Class Mcdonald S Vs Burger King In 2013 Mcdonald S Reported Profits O 1 (82.43 KiB) Viewed 12 times

Name: Please turn this in before the end of the class. McDonald's vs. Burger King In 2013, McDonald's reported profits of almost $6 billion on sales of $28 billion. For that same period, Burger King posted a profit of almost $234 million on sales of $1.1 billion. So McDonald's 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. Net Sales Cost of Goods Sold Gross Profit Marketing Expenses Net Income (Profit) McDonald's $28,105,700 $17,203,000 $10,902,700 $1,600,500 $ 5,585,900 Burger King $1,146,300 $ 195,300 $951,000 $ 321,600 $ 233,700 Calculate net profit margin, net marketing contribution, and marketing return on investment (or marketing ROI) for both companies. Which company is performing better? Hints: Net profit margin = net income / net sales Net marketing contribution (NMC) = net sales - cost of goods sold - marketing expenses Marketing ROI = NMC / marketing expenses Explain which company has a higher net profit margin and which company has a higher marketing ROI.