Answer / d.ravindran

Smaller cycle with frequent sales is better.

Even if margin is low but the numer of rotation of business
is more , then the net profit will be more .

For example , selling 10 product (rs 100 each)at 5 % profit
which gives more sales ( 4 rotation in month 40 products
(net profit rs50* 4 times = RS 200 but the investment is
only rs1000).

Selling the same 10 products (rs 100 each) at 15% ,1 time
rotation profit is RS 150( ie 25 % less net profit even
profit percentage is thrice )

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