The Formula to Calculate a Promotion-To-Sales Ratio Is: Total Promotion

question 143

Multiple Choice

The formula to calculate a promotion-to-sales ratio is: Total promotion expenditures divided by

• A)Total marketing costs.
• B)Marginal revenue.
• C)Average revenue.
• D)Net sales.
• E)Total sales.

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Definitions:

Days' Sales In Inventory

A financial metric that estimates how many days it will take to sell the entire inventory, indicating the liquidity of inventory.

Profit Margin

A financial metric that measures the extent to which a company or business activity makes money, expressed as a percentage of revenue.

Profit Margin Ratio

A financial metric that measures the percentage of revenue that exceeds the cost of goods sold, indicating the efficiency with which a company produces goods.

Gross Margin Ratio

A financial metric that measures the difference between revenue and cost of goods sold, expressed as a percentage of revenue.