Question

Problem 3-12 Ratios and Foreign Companies

Prince Albert Canning PLC had a net loss of £47,631 on sales of £200,152. What was the company’s profit margin? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
  
Profit margin              %
  
In dollars, sales were $317,683. 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 final answer to the nearest whole dollar.)
  
Net loss           $

Answer 1

The profit margin is calculated below:

Profit margin= -47, 631 200, 152

Profit margin = -0.2380

Profit margin is -23.80%.

The net loss is calculated below:

317,683 Net loss = 200, 152 x 47,631

Net loss = 75, 600.34