Nick and Helen Kikalos - Page 19

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          likely profit margins for the years at issue.                               
               Dr. Rossi examined Nick's Liquors' advertising and invoices,           
          and he reviewed records of interviews with petitioners'                     
          competitors and suppliers.  He analyzed data from Nick's Liquors'           
          invoices.  He also toured two of petitioners' stores and two                
          stores of their competitors.  He concluded that Nick's Liquors'             
          margins on its sales were considerably less than the 27-percent             
          average obtained from the Department of Commerce survey.  Dr.               
          Rossi based his determination on three factors:  First, that                
          Nick's Liquors' advertisements and invoices suggest profit                  
          margins of between 5 and 7 percent; second, that Nick's Liquors             
          did not operate a representative retail liquor business because             
          of Nick's Liquors' high-volume, low-priced operations; and,                 
          third, that Nick's Liquors' prices were kept low by the                     
          competitive retail environment of northwestern Indiana.                     
               Dr. Rossi analyzed Nick's Liquors' likely profits by looking           
          at its three major product lines:  Beer, wine and liquor, and               
          cigarettes.  In the beer category, Dr. Rossi examined six highest           
          selling brands, which accounted for 57 percent of beer sales.               
          Based upon the newspaper advertisements, he determined that the             
          average margin in beer was 5.99 percent.  Dr. Rossi concluded               
          that this margin did not apply only to infrequent "specials" but            
          to Nick's Liquors' beer prices generally.                                   
               Dr. Rossi observed that Nick's Liquors' wine and liquor                






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