Question

Prince Albert Canning PLC had a net loss of £25,182 on sales of £490,162.
  
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 $696,266. 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 income/Loss            $

Answer 1

Profit margin is profitability ratio measures how much a company earns relative to its sales.

Profit margin = Net Income /Sales

Where,

Prince Albert Canning PLC had a net income (loss) = - £25,182 (negative sign is for loss)

Sales = £490,162

Therefore,

Profit margin = - £25,182 / £490,162 = - 0.0514 or - 5.14%

Therefore profit margin is - 5.14%.

In dollars, sales were $696,266

That means £490,162 is equivalent to $696,266

Therefore net loss of £25,182 will be equivalent to dollar

= - £25,182 * ($696,266 / £490,162)

= -$35,770.56

Therefore net income/loss = -$35,770.56