"Can't?" he said, and raised his eyebrows. "Did you no ever hear aboot the rabbit and the bull pup?" "No. Shoot!" "It's verra short," he laughed. "A rabbit was one day chased by a vicious dog. He ran as har-rd as he could, but the dog had nearly caught up to him, so, to escape, he ran up a tree." "But a rabbit can't climb a tree!" I exclaimed. "Not generally," was the response, "but this rabbit had to!" How some silly little thing like that makes you think! It was some time before the silence was broken. Then I said: "Well, how do we do it?" "This diveesion of expenses will help ye," he said with a smile, and passed over this paper. DIVISION OF EXPENSES BASED ON ESTIMATE OF 20 PER CENT. ON GROSS SALES OF $30,000 _Per Cent._ _Present Cost_ Salaries 11.0 $3,300.00 $4,100.00 Rent 3.0 900.00 1,000.00 Taxes and insurance 1.5 450.00 460.00 Advertising 1.0 300.00 120.00 General Expenses 1.5 450.00 750.00 Delivery .5 150.00 50.00 Depreciation .5[1] 150.00 350.00 Heat and light .5 150.00 110.00 Bad debts .5[1] 150.00 500.00 ---- --------- --------- 20.0 $6,000.00 $7,440.00 [Footnote 1: These two items are estimated only, for the records of the old business are too incomplete to insure accurate figures.] I looked the schedule over. "Then my expenses," I said, "are $1,440.00 more than they should be?" He nodded. "And dinna forget," he added, "that these figures are based on $30,000.00 worth o' business. This means that ye maun increase your sales aboot $7,000.00 during the year. Unless ye do, the percentage cost o' doing business is going to be conseederably higher than twenty per cent. Unless ye can increase your business ye'll hae to decrease your expenses even more than $1,440.00." "Well," I remarked grimly, "bring out the axe. How are we going to cut it down?" "That's the brave spirit!" Jock replied. Did I tell you, that Jock McTavish was a Scotchman? Well, he was--very much so. Perhaps that's what made him such a good accountant. "Noo I know ye mean business," he said, "and noo we hae the facts to wor-rk on. There are numerous businesses ruined every year because o' the lack o' moral courage on the part of their owners to face facts and cut their cloth accordin' tae their means. Let's start wi' salaries. What are they noo?" "Let me see," I mused. "I think they are--" "Never mind," he said brusquely, "I _ken_. Get into the habit o' kennin', laddie. Ye'll never _guess_ your way to success. Here are the figures: