$i"s$:?r.

rvould have to sell for $157.00 per thousand in orcler to make 20J1.

So here u-e have a situation rvhere 2x4's sell for $114.00, $128.00 and $157.C0 a thousand ar-rd, in each case, the net profit return to investment is 207o. Ffotv can we talk about, horv can lve justify, the same price to everyone?

The prices that I have been throwing st you rvould be somervhat difficult to arrive at unless you had a method for arriving at n.rark-up that r,'ould take into consideration relationship of inventory to total assets, overhead, merchandise turn, and all of the things that I have been talking about.

About three years ago I became interested in this problem, because I had heard that a large building material dealer u'as selling cement at the rate of 12 times turn per month. I got to wondering rvhether or not he would make 114/o profrt if he made l/o net on sales. He doesn't make 144%, but it's amazing the kind of profit he does make rvhen I finally figured out how to get the answer by developing a formrrla.

This formula is somewhat difficult to rvork, primarily from the standpoint that again we resist this sort of thing. Only simple mathematics are involved in the working of the formula. The derivation behind it is somewhat difflcult but any lumberman could lvork the formula if he wanted to.

For convenience sake, I have prepared a chart that will give us the markup figures necessary when all of the important factors are knorvn. I-et me give you a ferv examples from this chart that r,vere developed by the formula, so that you 'rvil1 have a better understanding of

Be sure to plcce your orders with us for pool cor ond full ccrrlocrds before you go.

Conec, Mqsonite, Upson, Mqrlite, Hardwoods, Flooring, Sof twoods, Dowels, Plywood, Strqtex Building Popers.

FORTIFIBER BUILDING PAPERS

KIMSUI Blonket Insulolion

ARMSTRONG Cushionfone

Acousticol Tiles . Building Bocrrd . Temlock Tile

CETOTEX . Insulqlion Boqrd Prod. ucls o Tiles Plonk . Sheqthing

PIONEER FLINTKOTE . lnsulqtion

Boord Producls. Sheothing . CeilDek

GYPSUM BOARD PRODUCTS e Gypsum Woodgroined Boqrd

CERTAINTEED . "Firestop" Gypsum

Boqrd

PALCO IJ\/OOL INSULATION o

ROCKWOOL BATTS

COLU|YIBIA . GENEVA STEET CO Nqils