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Prince Albert Canning PLC had a net loss of £26,382 on sales of £315,650. What was the company's net profit margin?

a) 16.67%
b) 18.33%
c) 8.37%
d) 11.23%

User Nakita
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1 Answer

6 votes

Final answer:

Prince Albert Canning PLC experienced a net loss, thus their net profit margin is negative. The calculation shows that the net profit margin is -8.36%, which is none of the provided answer options (a, b, c, d).

Step-by-step explanation:

The student's question pertains to calculating the net profit margin of a company that has experienced a net loss. The net profit margin is a measure of profitability that is calculated by dividing net profit by sales revenue and then converting it into a percentage. In the case of Prince Albert Canning PLC, since they had a net loss, their net profit margin would be negative.

To calculate the net profit margin:

Net Profit Margin = (Net Profit / Sales) × 100%

But here, we have a net loss of £26,382 on sales of £315,650.

Therefore:

Net Profit Margin = (£-26,382 / £315,650) × 100% = -8.36%

User Vishesh Handa
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