Which company is doing better overall and with respect to marketing? Explain.
Appendix 2 discusses other marketing profitability metrics beyond the marketing ROI measure described in this chapter. On the next page are the profit-and-loss statements for two businesses. Review Appendix 2 and answer the followingquestions.

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Business A Business B Net sales Cost of goods sold Gross margin Marketing expenses $800,000,000 Net sales $900,000,000 400,000,000 $500,000,000 375,000,000 Cost of goods sold $425,000,000 Gross margin Marketing expenses Sales expenses Sales expenses Promotion expenses $70,000,000 30,000,000 590,000,000 50,000,000 Promotion expenses 100,000,000 140,000,000 General and administrative expenses General and administrative expenses Marketing salaries and expenses 10,000,000 Indirect overhead Marketing salaries and expenses Indirect overhead 20,000,000 100,000000 80,000,000 90,000,000 $235,000,000 Net profit before income tax 120000,000 240,000,000 Net profit before income tax