Which of the following types of business is most likely to have a low margin and high turnover?

a. A car dealership like a Mercedes sales organization.

b. A high end retail company like Saks Fifth Avenue.

c. A discount retail company like Walmart.

d. A jewelry store like Kay Jewelers.

C. . A discount retail company like Walmart.

The margin is the amount of operational income that is produced from every dollar of

sales made by a company. The cheap costs offered by a discount retail business are often what

draws consumers. This implies that the business generates less operational income per dollar of

sales than a high-end store would earn under the same circumstances. It is the quantity of sales

revenue produced by a certain level of operating assets in relation to the number of operational

assets. A discount retail business optimizes turnover by locating lower-cost shops in regions

where property is inexpensive to purchase. In other words, discounters like as Walmart make up

for their lower profit margins by reducing the amount of capital invested in assets that are

required to produce a dollar of revenue. As a contrary, merchants such as Saks Fifth Avenue and

Kay Jewelers invest in costly storefronts that offer more luxury settings for their customers.
 A company's profit margin requirements may be balanced with the necessity to maintain

inventory levels by using the high-cost, low-turnover approach. Selling high-priced goods using

this approach keeps revenues high since extensive inventory isn't required.

Larger profit margins per unit may be achieved despite selling fewer units by businesses

with established brand names or those selling premium goods. While customers may be willing

to pay more for a well-known brand, it is more likely that they will choose for a lesser-known

brand even if it is worse in quality. Major purchases are a good illustration of the high-cost/low

turnover strategy.