22 
BULLETIN 394, U. S. DEPARTMENT OF AGRICULTURE. 
of them did not segregate their expense accounts at all, but included 
everything under the one title of " General expense." 
Table VIII.— Annual operating expense. 
Number 
of stores. 
Total. 
High. 
Low. 
Average. 
Salary and labor 
Rent 
Light and heat 
Insurance 
Taxes 
Telephone and telegraph . 
Interest 
Postage and stationery . . 
Miscellaneous 
$145, 553. 98 
20, 279. 76 
2, 194. 18 
9, 054. 41 
5, 957. 55 
347. 50 
14,695.68 
874. 44 
195, 022. 36 
$12, 021. 95 
1, 800. 00 
250. 00 
1, 905. 44 
1, 259. 22 
56.00 
2, 300. 00 
644. 32 
83,623.79 
$720. 00 
84.00 
24.00 
22.00 
25.00 
25.00 
37.00 
25.00 
7.10 
$4, 695. 93 
881. 51 
137. 14 
301.81 
283.69 
43.44 
587.83 
174. 89 
5, 417. 29 
Total expense : 
393, 979. 86 
, 553. 74 
946. 00 
9, 609. 27 
Profit for year . 
Loss for year . . 
178, 229. 31 
2, 453. 38 
5, 749. 33 
1, 226. 69 
i The different columns will not balance since the answers are given in each case for the number of stores 
indicated. 
Table IX. — Monthly salaries and labor. 
Question. 
Manager 
Bookkeeper 
Head salesman. 
Other salesmen 
Saleswomen . . . 
Number 
of stores. 
High. 
$250. 00 
125. 00 
150. 00 
90.00 
55.00 
Low. 
$45. 00 
10.00 
45.00 
35. 00 
16.00 
Average. 
$106. 00 
68.87 
74.13 
49.95 
32.10 
Officers and directors usually receive the nominal sum of $1.50 per meeting, except where they are 
actively engaged in the business, when they are paid a salary for managerial or accounting services. 
It is believed that the salary and rent items for 32 and 23 stores, 
respectively, are fairly trustworthy, the average salary roll being 
about $400, and the average rental about $75 per month. Even these 
items are not typical of the stores covered by the survey, on account 
of the small proportion included. 
The percentage of expense to net sales is not excessively high. It 
ranges from 7 to 17, with an average of 11.7. This percentage is 
for 33 of the stores, and is probably a much better showing than 
would have been made had all the stores been able to contribute to 
the data from which this percentage was calculated. In view of 
the fact that some of the managers stated it as their belief that it 
cost somewhat more to run a cooperative than a privately owned 
business, this percentage is surprisingly low. The Harvard investi- 
gation of grocery stores found the lowest cost of operation to be 
10.4 per cent of sales, the highest 25.2 per cent, and the common 
percentage 16.5, as against the cooperative averages just quoted. 
In considering this showing for the expense of operation, there 
must be taken into account the average gross profit of 21 per cent for 
