July, 1930] Operating Costs of Grain Stores 11 



Table 7 — Relation of Total Investmejits to Fixed Costs per Dollar of Sales 



Total Investment Class Limits 



Fixed Cost Class Limits 



$.0100 

 to 

 .0199 



$.0200 

 to 

 .0299 



$.0300 



and 

 above 



Less than $10.000 



$10,000— 19,999 



$20,000-- 29,999 



$30,000— 39,999 



$40,000— 49,999 



$50,000— 59,999 



$00 .000— ()9 ,999 



$70,000— 79,999 



$S0,000— S9,999 



$90,000— 99,999 



100,000—109,999 



110,000—119,999 



100,000—169,999 



Number stores in each class 

 Average invest ment 



1 

 5 

 2 



3 



2 



1 



14 

 $27,143 



1 

 6 



9 



12 



$31 ,667 



2 

 3 

 3 



2 

 3 



15 



Iipoo ,ooo 



Further information on the effect of large and small investment in 

 relation to fixed costs per dollar of sales is presented in Table 7. A 

 definite relationship is noticeable; that is, for each $5000 increase of 

 investment there is an average increase of approximately one cent in 

 fixed cost i)er dollar of sales. Fourteen stores having an investment 

 from $10,000 to $60,000 or an average investment of $27,143 have 

 lower fixed costs per dollar of sales than those with larger capital in- 

 vestments. 



Table 8 — Relation of Fixed Cost to Total Cost and to Gross Margin per Dollar of Sales 



Relation of Fixed Costs to Total Costs and Gross Margins 



Since fixed costs represent approximately 25 per cent of total costs 

 of all stores, they affect total costs and gross margins but not in like 

 proportion. (Table 8) . A $.03 increase in total costs per dollar of 



