1With DLA's location closed to the public, Colquhoun' s utilities and automotive expense for the shop would be cut in half. If this site becarne popular= Colquhoun would need to organize shipping= packaging, and distribution plans for the antiques. He believed that absorbing the cost of packaging for the shipping would increase COGS to 50 per cent, and in conjunction with the right promotional plan, could boost last year's sales by 15 per cent. All other expenses from the previous year's income statement could be classied as fixed costs and were expected to remain the same dollar amount as the previous year