Prince Albert Canning PLC had a net loss of £47,031 on sales of £199,552. What w

Question

Prince Albert Canning PLC had a net loss of £47,031 on sales of £199,552. What was the company's profit margin? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

  Profit margin %

In dollars, sales were $316,873. What was the net loss in dollars? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  Net loss$

Explanation / Answer

Profit margin% = (Net income/ Net sales)*100

Given, Net income = - (Loss) = - £47,031

Net sales = £199,552

=> Profit margin% = (-47,031/199,552)*100 = 23.568293% = -23.57%

Given, Sales = $316,873

We know that Profit margin% = -23.57%

=> Net loss = - Net Income = - (Profit margin * Net sales)/100

= - (-23.568293*316,873)/100 = $74,681.56

Therefore, Net Income = -$74,681.56 and Net loss = $ 74,681.56

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.