Figure 4. Total Operating Cost for Vehicle Types O, P, and Q 

 at Various Annual Mileages. 



8000 



7000 



6000 



I 5000 



o 

 ■o 



8 4000 



Si 

 o 



> 



o 



3000 



2000 



1000 











KEY 



Cost function for operations within a 150 mile radius 

 Cost function for operations within a 50 mile radius 



10 20 30 40 50 



Thousands of miles per year 



60 



70 



Management Costs 



Management has several functions to perform. These functions es- 

 sentially consist of scheduling chick distribution, supervising personnel, 

 and purchasing vehicles and their inputs such as gas, tires, and so on. 

 Annual costs assigned to management are as follows: firm A, $80.00, 

 C, $200.00, E, $320.00, F, $400.00, G, $600.00, and H, $800.00. 



36 



