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High or low sales margin

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Which of the following types of firms do you expect to have high or low sales margins;

a supermarket
a pharmaceutical company
a jewelery retailer

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Solution Summary

The solution explains from the given firms which would have a high or low sales margin

Solution Preview

We need to look at margins in terms of return on investment which each business would want to generate

Return on Investment = Margin X Turnover
Turnover is how fast assets turn over- that is are converted to cash

A supermarket ...

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