AND PROFITS IN RETAILING MEAT 27 
In the groups of stores in which both profit and loss stores were 
combined and in the profit group for each class of store, considerable 
variations were found in gross margin. The relations were changed 
somewhat when the loss stores were eliminated. Thus, in the carry 
class, the profit stores in the southern section had a lower gross 
margin than the combined profit and loss average for the same 
section. Too much significance should not be placed on the results 
shown for this section as the nmnber of stores was small in both 
the carry and unlimited-delivery classes. The Pacific coast section 
stores had a higher margin in both classes of markets. 
The variations between stores according to class of service were 
marked. Profit carry stores for the northeastern section had a 
gross margin of 20.54 per cent and unlimited-delivery stores 23.96 
per cent. In the central section, the carry store gross margin per- 
centage was 23.65. and in the unlimited-delivery stores 25.20. In 
the South . the profit carry store gross margin percentage was 22.64, 
and in unlimited-delivery stores the margin percentage was 26.27. 
In the Pacific coast section the carry store gross margin percentage 
was 25.18, and in unlimited- delivery stores a percentage of 26.78 
was indicated. "The relatively larger margins in profit unlimited- 
delivery stores, when compared with profit carry stores, held true 
for the combined profit and loss groups for each of these two classes 
with the exception of the stores in the central section. A large 
ntimber of loss stores occurred in the data from this area and was 
responsible for the low gross margin shown in the combined profit 
and loss group. 
The items of total expense according to sections of the country 
followed rather closely the observed variations in gross margins. 
It was noted, however, that in the case of the profit unlimited- 
delivery class in the southern section of the country that the total 
expense percentage was slightly higher than in the Pacific coast 
section where wages were higher. The limited number of stores 
from which data were obtained in this area reduced the significance 
of these differences. 
In all instances, salary and wage percentages in the unlimited- 
delivery stores were higher than those in carry stores. Similarly, 
with the exception of the previously mentioned higher percentage 
of rent shown for the unlimited-delivery stores in the South, rents 
in the carry stores were higher than those in the delivery groups. 
PROFIT IN INDIVIDUAL RETAIL MEAT MARKETS 
Profit and loss in 1923 determined in this survey were in the nature 
of trading profit and loss and varied from true profit and loss in the 
economic sense by an amount equal to interest on borrowed capital 
and on the proprietor's net capital investment in the business. The 
including of borrowed capital interest in the profit percentage had 
slight significance in so far as the data from these stores were con- 
cerned, as this interest averaged less than 0.02 per cent of sales for 
all stores. It mattered little, then, whether it was included or not, 
either as an expense or in profit, as this percentage was definitely 
below the accuracy of the data. 
