Repair costs are incurred in replacing equipment components that 

 fail or need overhauling. The hours of use per week determine the cost 

 (per chick) for egg traying, tray washing, and debeaking equipment. 

 Utilization of hatchery capacity is the cost determinant for the remain- 

 ing equipment items. Table 9 gives the rates that were developed for 

 deriving repair costs. 



Table 9. Rates for Determining Repair Costs for Equipment 

 in Eight Model Hatcheries. 



Tal)le 10 gives the weekly ownership costs for the eight hatchery 

 buildings and the cost per chick with operations at 100 percent of capa- 

 city. Substantial economies are evident over the range of hatchery sizes 

 considered. The cost per chick decreases from 0.130 cents for hatchery 

 A to 0.061 cents for hatchery H. This represents a 53 percent decrease, 

 and most of the economies occur between hatcheries A and E. 



Table 10. Weekly Costs and Cost Per Chick for Eight Hatchery Buildings 

 with Operations at 100 Percent of Capacity. 



20 



