July, 1930] Operating Costs of Grain Stores 



Table 4 — Variation of Store Sales Compared with Fixed Costs 



The fixed cost and capital distribution of the 41 stores are given in 

 Table 3. Thirteen stores were rented and 28 were owned. Analysis 

 01 these data shows the rented stores had a more favorable ratio be- 

 tween fixed costs per dollar of sales than the owned stores. This ra- 

 tio v\-as $.0221 for the rented and $.0282 for the owned, or a differ- 

 ence in fixed costs per dollar of sales of $.0061 in favor of the rented 

 stores. Also the capital turnover of the rented stores was 4.3 times 

 compared to 3.2 times for the owned stores. 



Table 5 — Relation of Fixed Costs per Dollar of Sales to Increasing Volume of Business 



Fixed Cost Class Limits 



Total Sales Class Limits 



Less 

 $40 ,000 



$40 .000 to 

 120 ,000 



Above 

 $120 ,000 



$.0100— .0199 



.0200— .0299 



.0300— .0399 



.0400— .0499 



.0500— .0599 



Number stores in each class 

 Average fixed cost 



3 

 1 

 1 

 1 



8 

 3 

 3 



9 



6 

 . 0350 



23 

 .0272 



i 

 1 

 3 



12 

 .0240 



