4 N. H. Agri. Experiment Station [Bulletin 251 



lines were given reference numbers which have been used in present- 

 ing the analysis of this study so that each dealer may compare his 

 costs and margins with those of others. 



Through the cooperation of 62 dealers, postal cards were mailed to 

 the Station weekly during 1928 giving each dealer's retail cash price 

 for corn, wheat, cottonseed, gluten feed, standard bran, standard mid- 

 dlings and definite brands of scratch, dry mash and dairy feeds. Al- 

 so, ten wholesale distributors and manufacturers sent their mixed car 

 quotations regularly for the same period. Through comparison of 

 these quotations it is possible to show the range in weekly retail prices 

 for the same commodity as well as the difference in the wholesale 

 prices; to determine how closely the market is followed; and to learn 

 the effect of operating costs on the retail price of grain. 



Complete cost accounting records were obtained from 41 stores for 

 the business transacted during 1928. These records form the main 

 basis of the analysis in this report. They are supplemented by the 

 infomiation for 1926, gathered in the state survey. Due to the lim- 

 ited number of cooperative owned stores in the state, it seems im- 

 practicable to make comparisons of the cooperatives with the private 

 owned stores. 



DEFINITION OF TERMS 



Grain Store: when 75 per cent or more of the total yearly sales 

 are for feed and grains. 



General Merchandise Store: when feed and grain sales are less 

 than 75 per cent. 



Fixed Expense: includes depreciation, insurance, rent, taxes and 

 interest. In this study, yearly interest, at 6 per cent was charged on 

 net worth. Depreciation on frame buildings was charged at 4 per cent 

 and 2 per cent on brick or stone. A 10 per cent depreciation rate was 

 charged on equipment. (Depreciation on truck and delivery equip- 

 ment is included under the heading of delivery costs). 



Labor Expense: includes amount paid to the manager, book-keeper 

 and to the regular labor. The value of the proprietor's time where 

 no regular salary was paid was figured at $35.00 a week. 



Delivery Expense: includes gas, oil, repairs, depreciation and mis- 

 cellaneous items. A yearly truck depreciation was charged at 25% of 

 original cost price. Expenses for the maintenance of horses and wag- 

 ons are inclucled under this head. 



Other Expense: includes telephone, light, power, office supplies, 

 fuel, repairs, demurrage, bad debts, collection charges and interest 

 paid on borrowed capital. (Large repair bills were redistributed over 

 a period of years.) Travel and all other items not heretofore men- 

 tioned were included under miscellaneous. 



Total Costs: include the fixed, labor, delivery and other costs which 

 are incurred during one year's operation. 



