Question

Marketing return on sales equals ________.

A) net marketing contribution/sales x 100%
B) profits/sales revenues x 100%
C) gross margin/sales revenues x 100%
D) net marketing contribution/marketing sales & expenses x 100%
E) sales revenues x % gross margin

Answer 1

Marketing return on sales equals the net marketing contribution divided by sales revenues, multiplied by 100%, hence option A is correct.

Step-by-step explanation:

The question asks to identify which formula correctly represents the marketing return on sales. The correct formula is the net marketing contribution divided by sales revenues, multiplied by 100%. Therefore, answer A is correct: Marketing return on sales equals net marketing contribution/sales x 100%. Total revenue is the income generated from selling products, calculated by Price x Quantity. Accounting profit involves total revenues, subtracting explicit costs like depreciation. In economics, economies of scale occur when the long-run average cost of production decreases as total output increases, pinpointing efficiency in production processes.