Income Statement & Marketing Control Statement

Examples used in MKTG301 class Tuesday, October 23, 2018

Sales: $450 (in millions)
Cost of Goods Sold:
Management salaries 31.7
Crew salaries 27.6
Food 153.0
Packaging (food) 10.6
Total Cost of Goods Sold: 222.9
Operating Expenses:
Rent 93.0
Real Estate Taxes 1.7
Royalty (to franchisor) 15.0
Insurance 2.3
Office Expense 9.6
Advertising and promotion 27.3
Miscellaneous 20.1
Depreciation 9.7
Total Operating Expenses: 178.7

Operating Profit Before Tax: 48.4

(a) Create a total-dollars MCS (through NMC, including % for GMC, PGMMC, NMC) from the information found on the income statement. Note that you should not rely on the “categories” above (e.g., Cost of Goods Sold), but rather on how each expense “acts.”
(in millions)
Revenue: $450
Cost of Goods Sold:
Crew salaries 27.6
Food 153
Packaging (food) 10.6
Royalty (to franchisor) 15
Total Cost of Goods Sold: $206.2
Gross Marketing Contribution: $243.8 (54.17%)
Programmed Costs:
Advertising and promotion 27.3 (6%)
Net Marketing Contribution: $216.5 (48%)