Q.2 Akash Sahoo has opened his own retail outlet and he is selling two categories, vegetables and apparels from his outlet. Monthly turnover of vegetables is only Rs. 150 lacs while monthly turnover of apparels is Rs. 350 lacs. Vegetables give a lower gross margin or 15% while apparels give a higher gross margin of 40% (both on selling price). However vegetables need an average stock level of 2 lacs at cost while apparels need to be stocked worth 50 lacs at cost. Space required to stock vegetables is 200 square feet but apparels need more space to stock at 600 square feet. Calculate the profitability for both the categories in terms of Gross Margin, GMROI and GMROF. Discuss which category should the Akash focus more on and why