Depreciation, Repairs and Maintenance ^' 



Rates established for both the variable and fixed components are shown in 

 Table 1. Special rates were established on certain ice-making and handling 

 equipment, since it required less attention and is less subject to obsolescence 

 than line equipment. 



Taxes, Interest, Insurance 



Rates established are shown in Table 1. In practice, tax and insurance rates 

 differ materially from area to area. Here they are standardized at modal 

 levels. 



Table 1. Rates Used to Determine Fixed and Variable Components 



of Capital Costs 



Iter 



Equipment 

 Building^ Ice-making Other 



and Handling In-plant 



Fixed Components 



All depreciation 



Time depreciation 



Taxes 



Interest^ 



Insurance 



Repairs and maintenance 



Variable Components, 

 in-plant equipment 



Percent of Capacity 



30 



40 



50 



60 



70 



80 



90 



100 



110 



120 



130 



1 Including artesian well, office equipment, refrigerator and equipment. 

 ~ On new value, or 6% on average value. 



3 Total value to which applied also includes land. 



4 1% on ice crushers. 

 ^ Maintenance only. 



8 See discussion under "variable operating costs." 



14 



