32 BULLETIN NO. 161 



INTEREST ON EQUIPMENT FOB TEN ACRES 



1500 heaters @ $ .20 $300.00 



1 wagon @ $60.00 60.00 



Torches 10.00 



Thermometers 15.00 



Storage Tank 240.00 



For ten acres $625.00 



For one acre 62.50 



Interest at 8% 5.00 



DEPRECIATION ON ABOVE EQUIPMENT 



Heaters $ 30.00 



Wagon 4.00 



Torches 1.00 



Thermometers 1.50 



Tank 12.00 



For ten acres $48.50 



For one acre 4.85 



Interest 5.00 



Depreciation 4.85 



Placing 7.00 



Clothes , , 5.00 



$ 21.85 



Each year the heaters must be placed in the orchard and 

 then after the fruit has developed past the danger point they 

 must be emptied and gathered and cleaned. There is also the 

 cost of the clothes the two men wear while handling this oil for 

 these clothes are ruined. Since these are constant overhead 

 expenses we will add them to the interest and depreciation factor 

 used in later equations. In Utah the placing, etc., costs about $7 

 and the clothes injury $5. These two added to the interest and 

 depreciation make the total overhead cost $21.85. 



In working out the equations that follow we have used the 

 round number of $22.00 for the total constant overhead expense. 



The total receipts from fruit must exceed cost of production 

 by enough to pay a reasonable interest on the investment in the 

 farm. Let us examine this mathematically. 



Whether one should heat or not depends on cost of labor, cost 



