1% 5% 8% 11% 14% 16%
28c. 0% 3% 6% 9% 12% 15%

_Figuring Costs and Profits_

While the cost of conducting a retail grocery business naturally varies
according to local conditions and the size of the enterprise, an
investigation among some 250 stores in small and large cities made in
1919 by the Bureau of Business Research, Harvard University, showed that
the average cost was fourteen percent; that the net profit averaged two
and three-tenths percent; and that stock was turned about seven times a
year. Gross profits ran from ten and one-half percent to twenty-six and
four-one-hundredths percent of the net sales, the most typical figure
being sixteen and nine-tenths percent. Sales cost formed the largest
single item of expense, varying from three and forty-one hundredths to
nine and ninety-four hundredths percent, with the bulk of figures
showing around one and eight-tenths percent.

According to advanced business practise the cost of doing business
should be based on these fourteen points:

1. Charge interest on the net amount of the total investment at the
beginning of the business year, exclusive of real estate.

2. Charge rental on real estate or buildings at a rate equal to
that which would be received if renting or leasing to others.

3. Charge, in addition to what is paid for hired help, an amount
equal to what the proprietor's services would be worth to others;
also treat in like manner the services of any member of the family
employed in the business and not on the regular payroll.

4. Charge depreciation on all goods carried over on which a less
price may have to be made because of damage or any other cause.

5. Charge depreciation on buildings, tools, fixtures, or anything
else suffering from age or wear and tear.

6. Charge donations and subscriptions paid.

7. Charge all fixed expenses, such as taxes, insurance, water,
lights, fuel, etc.

8. Charge all incidental expenses, such as drayage, postage, office
supplies, livery expenses of horses and wagons, telegrams and
telephones, advertising, canvassing, etc.

9. Charge losses of every character, including goods stolen, or
sent out and not charged, allowances made customers, all debts,
etc.

10. Charge collection expense.

11. Charge any other expense not enumerated above.

12.