II. Classification of Processing Plant Costs and 

 Their Behavior in Relation to Volume 



Considerable variation exists in the manner and detail in which poultry 

 processing plants keep records. Hence, to compare plant records and re- 

 duce them to usable guideposts for studying economies of scale, it was 

 necessary to establish a limited number of cost groupings and a theoretical 

 framework. 



UNIT 

 COST 

 6-4— 



vt 



Fixed Overheqd. 



30 40 50 60 70 80 90 100 110 120 130 



Percent of Capacity 



Figure 2. Behavior of Cost Groups in Model Plant Capable of 

 Processing 3600 Broilers Per Hour. 



