# "Because It's the Right Thing to Do."

A veteran CFO discusses the finer points of bottle design and why paying higher wages makes sense. An interview with Richard Galanti, EVP and CFO of Costco Wholesale Corp.

Edward Teach, CFO Magazine
March 1, 2010

## Response to David Stern

Mr. Stern, many thanks for your kind words. Your source data and math are correct; we simply rounded the numbers. Membership fees of \$1.533 billion contributed 2.146% (2%) of total revenue and 86.27% (86%) of operating income for Costco in fiscal 2009.

Posted by Ed Teach | March 09, 2010 11:48 am

## Membership % of Operating Income

I enjoyed this article - thank you! It illustrates some important profit concepts I want to share with my clients (small/micro businesses, but the concepts are nonetheless applicable). But before I do share the concepts I want to be sure I have the math right: How does 2% of revenue (\$71,422 x 0.02 = \$1,428) = 86% of Operating Income (\$1,777 x 0.86 = \$1,528)? I'm using Google Finance #s for year ending 8/30/09, so maybe my source data is off. Any insights would be appreciated. Thank you, David Stern www.DavidSternCFO.com

Posted by DAVID STERN | March 09, 2010 11:14 am