1.2 CMA Presentation Part One - Assignment.

Aimee Barbosa - 1.2 CMA Presentation Part One - Assignment.

Field of Study: Media Communications (Business)

Math Application: Profit Margin

Relevance: Being that there are different types of Profit Margins, normally a small media company would choose Income and Sales, for quick readings on their earnings to be most useful. Thus, a Profit Margin is calculated by dividing the Net Income by Sales. As a Media Communications major, it is interesting me to see how media companies work use advertising as part to earn their profits and what I can do to boast theirs; as well as, boast my own business. Therefore, learning how and the tips and tricks that will help any company’s figure out their revenues quarterly and yearly.

Math Formula:

P = I / S

P = Profit Margin

I = Net Income

S = Net Sales

Example:

Lauren has set up an online boutique selling all kinds of handmade goods. She has an income already of $10,000, and recently saw a jump in sales by 25%. How much is her new Profit?

P = 10,000 / .25

Profit Margin = $40,000

APA Citation: Profit Margin Definition | Investopedia. (2003). Retrieved August 10, 2016, from http://www.investopedia.com/terms/p/profitmargin.asp

Average Profit Margins for Media Companies — THE RESOURCEFUL CEO™. (2013). Retrieved August 10, 2016, from http://theresourcefulceo.com/2013/04/average-profit-margins-for-media-companies/

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Field of Study: Media Communications (Business)

Math Application: Return on Investment

Relevance: A Return on Investment, also known as an ROI is defined as, a profitability measure that evaluates the performance of a business by dividing net profit by net worth. It is the most profitability ratio. Also known as ROI, it is dealt with money that is invested into the company; and the return portion is realizing that the money based is the net profit of the business. One of three ways to find your Return on Investment is by dividing your net income by total capital plus reserved to calculate the rate of earnings on the proprietary equity and stock equity.

Math Formula:

ROI = C / I

ROI = Return On Investment

C = Capital Plus

I = Net Income

Example:

With Amanda’s online boutique beginning to do well, she wanted to start paying back on an investment. If her net profit is $40,000 and her total assets is $6,000 – what is her ROI?

ROI = 6,000 / 40,000

Return On Investment = .15 or 15%

APA Citation:

Return on Investment (ROI). (n.d.). Retrieved August 10, 2016, from https://www.entrepreneur.com/encyclopedia/return-on-investment-roi

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Field of Study: Media Communications (Business)

Math Application: Data Rate

Relevance: Data Rate in business gives the company an overview of how it’s doing reaching out to New and Returning clientele throughout all of social media. It can show on which Social Media platform, a company’s messages of sales, new items, important information of the company clients and customers want and need to know are being reached the most. After Data Rate is collected, it will then help the company determine which platforms they are excelling reaching their audience growth, engagement, visitor frequency, assisted social conversions, customer service savings, bounce rate, potential, reached, influenced as well as, click-thru rates. Where they need to improve on, to keep their audiences coming back.

Math Formula:

DR = A / Hr

DR = Data Rate

A = Audience

Hr = Hour

Example: At the end of a busy days work, Amanda wanted to see the total traffic she had driven over to her website. She had been busy for 8 hours watching her site and posting about her business on social media, she’d thought 400.

DR = 400 / 8

Data Rate = 50 per hour visited her website.

APA Citation:

Bit Rate vs Data Rate. (n.d.). Retrieved August 10, 2016, from http://wolfcrow.com/blog/bit-rate-vs-data-rate/

Global Social Media Statistics Summary 2016. (2016). Retrieved August 10, 2016, from http://www.smartinsights.com/social-media-marketing/social-media-strategy/new-global-social-media-research/

5 Social Media Metrics that your Business Should Track. (2013). Retrieved August 10, 2016, from http://thenextweb.com/socialmedia/2013/10/29/5-social-media-metrics-business-tracking/#gref