MARGINS, EXPENSES, AND PROFITS IN RETAILING MEAT / 
amount equal to 1.75 per cent of sales was added for any excess over 
$20,000 and up to a total volume of business of $100,000 yearly. For 
stores in which the sales volumes were in excess of $100,000, an addi- 
tional 0.T5 per cent of the excess was added in estimating the pro- 
prietor's wage. When these methods of determining proprietors' 
wages were applied to varying volumes of sales, a wage of $1,820 
per year was estimated for the proprietor of a $20,000 business, when 
the usual wage for cutters in the locality was $35 per week. Under 
similar circumstances the proprietor wage in a store where the annual 
business was $50,000 was found to be $2,345 per year and the wages 
of a proprietor of a $100,000 business were estimated at $3,220 
annually. 
Estimated wages of the proprietors of retail markets of varying 
sales volumes and in different cities are presented in Table 1. These 
wage amounts applied only in those instances where the proprietors 
devoted their entire time to the conduct of their businesses. 
Table 1. — Proprietor wages estimated for businesses of varying size 
Annual volume 
of sales 
Total annual estimated 
proprietor based on 
wage per week of— l 
wage of 
cutter 
.Annual volume 
of sales 
Total annual estimated 
proprietor based on 
wage per week of— 1 
wage of 
cutter 
2 $25 
3 $30 
^ $35 
5 $40 ' 
2 $25 
s $30 
* $35 
5 $40 
$20,000 or under.. 
$40,000 
$1,300 
1,650 
2,000 
2,350 
2,700 
$1, 560 
1,910 
2,260 
2,610 
2,960 
$1, 820 
2,170 
2,520 
2,870 
3,220 
$2, 080 
2,430 
2,780 
3,130 
3, 480 
$120,000 
$2, 850 
3, 000 
3,150 
3,300 
3,450 
$3,110 ! $3,370 
3,260 3,520 
3,410 ! 3,670 
3,560 ' 3,820 
3,710 1 3.970 
$3, 630 
$140,000 
3,780 
$60,000 . 
$160,000 
3,930 
$80,000 .. 
$1SO,000 
4,080 
$100,000.. 
$200,000 
4,230 
1 Each wage amount is based on the weekly cutter wage at the head of the corresponding column. Per- 
centage amounts of sales in stores where the annual sales were over $20,000 were computed in accordance 
with the methods described on page 6. 
2 Cutter wages in New Orleans, $25 per week. 
5 Cutter wages in Bridgeport and Xew Haven, $30 per week. 
4 Cutter wages in Baltimore, Binghamton, Birmingham, Cheyenne, Denver, Jacksonville, Lincoln, 
Minneapolis, St. Paul, and Washington, $35 per week. 
5 Cutter wages in San Francisco and Seattle, $40 per week. 
Prior to the inauguration of the study, these methods of estimating 
proprietors' wages were referred to representative men in the retail- 
meat industry to determine whether the estimated wages were reason- 
able. During the course of the study numerous opportunities were 
found to compare the estimated wages allowed for proprietors of 
markets with various volumes of business with amounts paid man- 
agers of stores of the same sales volumes. In most instances, a very 
close agreement was noted so that the validity of the amounts deter- 
mined by these methods of estimate may be regarded as sufficiently 
well established for wage conditions which existed during the period 
covered by the survey. Any material changes in the wage scale or 
in the retail prices of meat will render the percentages used of little 
value under the changed conditions. 
In partnerships, a single partner was regarded as the proprietor 
and the remaining member or members of the firm were allowed a 
salary equal to the prevailing wage for the services performed. In 
corporations, the amounts withdrawn as salaries by officers of the 
corporation were analyzed to determine whether they were in agree- 
