boxing operation has been adopted for the other hatcheries. This type 

 of machine requires a much higher investment. Hatcheries B through E 

 are equipped with one each; F, two; G, three; and H, four. Table 7 

 summarizes the investment for debeaking equipment. 



The vaccination operation does not require any additional equip- 

 ment. Vaccine is shipped in plastic disposable containers which are used 

 to vaccinate chicks by the ocular method.^ 



Building and Equipment Ownership Costs 



The ownership cost of building and equipment is considered a fixed 

 cost to the firm. Included under this heading are depreciation, taxes, 

 insurance, and maintenance and repair of the building. Table 8 shows 

 the rates expressed as a percent of new investment that were developed 

 or adopted for determining the costs. 



Table 8. Rates for Determining Fixed Ownership Costs 

 of Building and Equipment. 



* Six percent on average undepreciated investment or 3 percent on initial invest- 

 ment. 



** Fifty dollars per thousand assessment on average undepreciated investment. 



Neither land nor a source of water are included as cost items. Land 

 and water costs vary considerably depending on location and would be 

 insignificant over the length of the usefvil life of the hatchery. 



Equipment maintenance and repair costs are variable and were de- 

 termined on the basis of utilization of hatchery capacity or hours of use. 

 Maintenance includes periodic inspections, cleaning, and various preven- 

 tive maintenance procedures performed by the hatchery's labor force. 

 Equipment maintenance costs are divided into two classes: (1) labor 

 costs which are included under hatchery labor; and (2) materials which 

 are included under supplies. 



^ See Appendix A for description of ocular method. 



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