delivery. Or, to restate an earlier premise, only then are the route time 

 savings sufficient to more than offset the higher equipment depreciation cost. 



Table 21. Costs of Depreciation on Small Truck Delivering Bagged Grain 



^ 280 working days per year. 



Table 22. Daily Operating Costs of Small Truck Delivering Bagged Grain 



Under Assumed Conditions 



^Gasoline mileage — 10 miles per gallon; oil consumption — 1 qt./400 mi. 



With Figure 10 as a working basis some of the theoretical competitive 

 aspects of the introduction of bulk delivery into an area can be explored. 

 Suppose, for example, that Company A decides to buy bulk equipment and 

 has arranged to shift over some of its largest customers to this method. If, 

 for example, Company A now has 3 trucks equipped for delivering bagged 

 feed and nearly maximum use is being made of these trucks the average 



(2 x 14 = 28 \ 

 1 X 12 = 21 I 

 40 / 



delivery cost per ton for 40 tons daily I 1 x 12 r= 12 ■ is $1.82. If 10 tons 



V 40 / 



daily can be delivered in bulk (average delivery cost per ton — $2.32), 

 then the 3 bagged trucks divide 30 tons between them (average delivery 

 cost per ton for 10 tons — $2.15). Whereas, the average cost for all de- 

 liveries was formerly $1.82 per ton, it is now $2.19, per ton, i.e., 



43 



