MARGINS, EXPENSES, AXD PROFITS IX RETAILING MEAT 23 
tion. however, between stores of various classes or between stores 
of different sales volumes with the same class. Furthermore, when 
the classes were divided according to profit and loss groupings no 
significant differences were noted. 
BAD DEBTS 
In some of the carry stores, where the proprietors reported that 
the business was 100 per cent cash, close analysis disclosed that there 
were losses from bad debts. In other words, some credit was ex- 
tended by a few so-called cash-and-carry operators. In the present 
instance. 11 of the carry stores showed losses from bad debts amount- 
ing to an average of 0.16 per cent of net sales. 
In the limited-delivery class, loss from bad debts was 0.25 per cent 
of sales. This was higher than that of the carry stores and was a 
result of the increased service which this type of store rendered to 
its customers. The unlimited-delivery group averaged a much larger 
percentage loss from bad debts. The 0.38 per cent noted for this 
class of store was in keeping with the increased extension of credit- 
by these more unlimited-service stores. 
An inspection of losses from bad debts indicated that as volume 
of sales increased, the percentage losses decreased. This seemed to 
indicate a closer attention to credit granting and to collection of 
accounts by the managements of the larger stores. 
ADVERTISING 
The average advertising expense for the three classes of stores 
varied but little, being 0.42 per cent of net sales for the carry stores, 
0.44 per cent for the limited- delivery class, and 0.44 per cent for the 
unlimited-delivery class. Furthermore, little variation was observed 
between the profit and loss stores within each of the classes. How- 
ever, when advertising was analyzed according to volume of sales 
within each class of store, it was foimd that in the carry and limited- 
delivery classes, the expense percentages were notably higher in those 
stores whose volumes of sales were over 8100,000. This was brought 
about by the necessity for drawing trade from outside the area which 
would normally be served by each of these stores. The most obvious 
and direct means of attempting to accomplish this result was adver- 
tising and the data reflected this. The differences among stores 
of various classes and the stores of varying volumes within each 
class are clearly brought out in Figure 1. 
INSUBAXCE.. TAXES, AXD KEPAIBS 
_ Percentages representing these three items of expense showed but 
little variation among the three classes of stores. 
UNCLASSIFIED EXPEXSE 
The variation noted in this item of expense when expressed as a 
percentage of net sales in stores of the various classes was brought 
about to a large extent by the including of other delivery expense 
as a portion of the unclassified expense. 
