25 



20 



CO 

 Q 



o 



CL 15 

 O 



o 

 cc 



UJ 

 CL 



(/) 



h- 



U 



o 



10 



FLAT CHARGE 

 OF 25 'FOR 

 lOR 2 BAGS 



^ 



— KEY — 



LOAD/NG LABOR COST 



COLLECTING LABOR COST 



DEL/VERY LABOR COST 



TRUCK DEPRECIATION 8 OVERHEAD COSTS 



TRUCK OPERAT/NG COSTS 



TRAVEL LABOR COST 



CONSTANT CHARGE 



GRADUATED CHARGE 



W///////////./y.y/^y///^y.7^ 



01 3 5 8 10 13 20 30 40 50 60 70 



NUMBER Of \00 POUND UNITS 



80 



90 



100 



Figure 5. Conii)arison of constant and graduated delivery charges with per 



unit costs by size of order. 



il could justifiably be applied to very small purchases of grain-feed as 

 well as to minimum deliveries of other lines where no grain-feed is de- 

 livered at the same time. 



The graduated delivery charges indicated in Figure 5 are not neces- 

 sarily those which best fit the data shown, or any individual situation, but 

 are a composite of several sets observed. However, the graduated principle 

 can be well supported by the results obtained in the study. Some graduated 

 steps and charges per unit which might be interpolated from Figure 5 are 

 shown in Table 9. 



Figure 5 also shows costs per 100-lb. units according to number of 

 units, as calculated from data obtained in the study. Calculations are based 

 on bagged feed, 70 miles daily travel, labor at $1.50 per hour, and the 

 use of one man on delivery and two men in loading. Travel labor cost 

 (driving time) and truck operating costs (gasoline, oil, repairs, tires, etc.) 

 were treated as fixed costs; i.e., total value divided by total units (200). 

 Truck depreciation and overhead costs were allocated in proportion to load- 

 ing and travel time per unit. Labor cost of delivery, collecting time, and 

 loading time were interpolated from per unit averages. The four top costs 

 on the chart were variable. Greatest per unit variability occurs in collection 

 costs and delivery costs, and only very slight variability in depreciation 

 and overhead costs. 



Discounts for Bulk Feed 



The preceding discussions have been concerned primarily with bagged 

 feed. Present experience is much less extensive with distributing and pric- 

 ing bulk feed than with bagged feed. However, there are a number of points 

 about pricing bulk feed which require mention. There is little reason to 



18 



