"Sither," continued Jock, "ye planned your expenses to be twenty per cent. on a $30,000.00 business, but, as a matter o' fact, it's costing ye twenty-two and one-half per cent. on that basis."
"Let me see," I said, figuring vigorously, "Twenty per cent. of $30,000.00—that's $6,000.00."
"That is so!" said Jock.
"But you figure that, at the present rate, expenses will approximate twenty-two and one-half per cent. of $30,000.00—or $6,750.00."
"Ye spoke tha truth," said Jock. "In other words, ye're losing $750.00 worth of profit which ye would a' had if ye'd conducted your beesiness better."
"I guess I've—"
"Tut, tut, mon," said Jock. "I'm no' saying ye haven't done grand. Ye've done splendidly, but ye should be able tae keppit your expenses doon tae twenty per cent. As a matter o' fact, when ye do more business I think ye'll be able to do so."
"Where has that two and one-half per cent. extra expense gone to?" I asked.
"I'll tell ye," said Jock. "Ye planned bad debts tae be one-half o' one per cent., or $150.00, whereas they are aboot one per cent. or $300.00."
"Yes," I remarked ruefully, "I remember that we made a lot of bad debts when we first took over the business; but, since I have put in that new system of keeping closer track of charge accounts, we have had very little loss that way. We will be down to our one-half of one per cent. next year," I added cheerfully.